The Bank of England (BoE) has unveiled a new range of powers it believes are needed to tighten up the rules faced by financiers across Britain to avoid any repeat of the recent financial crisis in the coming years.
For instance, companies will be required to increase their levels of capital over and above those dictated by current international regulations, while also stopping their propensity to grant mortgages deemed to be high in risk.
In addition, BoE governor Mervyn King - who took up this post in 2003 - has insisted the Financial Policy Committee will be granted the necessary powers to keep the banking industry in check moving forward.
"Without the right instruments at its disposal, the committee will not be able to take prompt, effective action to tackle emerging risks," he noted.
By Gary Cooper