Regulator calls for greater bank supervision

19 May 2011

The top financial regulator in Britain has called for the supervision of banks in the nation to become more intensive.

Hector Sants - chief executive of the Financial Services Authority - is to introduce a new system to monitor the risk-taking activities of lenders in an effort to minimise the danger that the recent banking crisis might be repeated.

Mr Sants will explain how the Prudential Regulatory Authority (PRA), which will regulate banks from 2013, is to function.

Speaking to Robert Peston of the BBC, he claimed the PRA is to take up a more aggressive stance to make sure the stability of the financial system is not threatened by the action of banks.

"The presumption in our paper [on the creation of the PRA] is that we would have liked more capital than we are likely to get. So supervision becomes more important," Mr Sants added.

Earlier in the week, the Financial Stability Board announced it is to undertake a review looking at the bonus policies of the biggest banks in the world.

By Asim Shah

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