British Finance Minister Asks for Broader BoE Powers
The Bank of England (BoE) has been asked by the country’s Finance Minister to consider enacting extra measures to help control the British banks’ risk-taking strategies. Minister George Osborne also asked for an accelerated time frame to implement new practices from international financial regulators. Specifically, the BoE’s Financial Policy Committee can change Britain’s financial system by forcing banks to hold more capital, but it doesn’t have the ability to control risk-taking. But that’s exactly what Osborne is asking for, to further ensure the country’s financial security. Should those rights be granted, it’s unclear exactly how that would affect investors’ stakes. More as this situation develops.