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Bank of England: Banking Supervision

Volume 474: debated on Tuesday 1 April 2008

To ask the Chancellor of the Exchequer if he will re-instate to the Bank of England responsibility for banking supervision. (196518)

[holding answer 25 March 2008]: The Financial Services and Markets Act 2000 established the Financial Services Authority as the UK's sole financial regulator and supervisor. The Act introduced a risk-based regulatory regime based on statutory independence, transparency, proportionality and rigorous assessment of cost and benefits, replacing the fragmented, overlapping and burdensome self-regulatory system that had previously governed the financial services sector.

The Tripartite authorities are, in the light of recent instability in financial markets, consulting on reforms to banking supervision and depositor protection. However, the Government and other authorities remain firmly committed to the existing regulatory framework.