BoE official: Banking crisis as bad as world war

4 December 2012

Britain's economy has suffered as much from the banking crisis as it did during the world wars.

That is the opinion of Andrew Haldane, executive director in charge of financial stability at the Bank of England (BoE), who believes the collapse experienced by lenders since 2008 has had a devastating impact on the UK's financial system.

During an interview on BBC Radio 4's World at One programme yesterday (3 December), Mr Haldane commented: "In terms of the loss of incomes and outputs, this is as bad as a world war. That is the scale we are talking about."

The BoE official went on to indicate that the after-effects of the crisis are likely to last for decades and said confidence will not return to the sector until banks make their balance sheets completely transparent.

"We need to get our banking system firing again - to get its mojo back," he stated.

By Tony Aynsley

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development