G7 group agrees no bank should be "too big to fail"

13 May 2013

The G7 group of industrialised nations has agreed no bank should be "too big to fail" and more needs to be done to stop taxpayers footing the bill after a meeting in London over the weekend.

UK chancellor George Osborne held a news conference after the event with Bank of England governor Sir Mervyn King and said regimes must be put in place to deal with failing banks in order to protect taxpayers "in a globally consistent manner".

The finance ministers and central bank governors of the G7 group also agreed more collective action must be taken against tax evasion.

Mr Osborne said it was "incredibly important" for companies and individuals to pay the tax they owed.

The growing issue of tax avoidance has been raised by the UK, Germany and other countries earlier in the year.

Several nations have asked the Organization for Economic Co-operation and Development to explore possible changes to address the problem of multinational firms using transfer pricing rules to move their profits to tax havens.

By Claire Archer

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