To ask the Chancellor of the Exchequer if he will undertake an investigation of the effects of arrangements for control of the money supply which include creation of it by private financial institutions in the form of credit; and if he will make a statement. (226556)

Monetary policy in the United Kingdom is set by the independent Monetary Policy Committee of the Bank of England.

The Capital Requirements Directive implements the international Basel II agreement into EU legislation which stipulates how much of their own financial resources banks and investment firms must have in order to cover their risks. The Financial Services Authority is responsible for implementing the directive in the UK.