Mark Hoban, financial secretary to the Treasury, has announced proposals that will help the authorities deal with the failure of parts of the financial system other than banks.
In the Banking Reform White Paper published in June this year, the Government undertook to explore the case for addressing gaps in the resolution regime framework for non-banks.
Hoban proposed to consult on what policies will best deal with the risks associated with other financial institutions, and with financial market infrastructure - the various networks that connect market participants.
The consultation covers four broad categories - investment firms, central counterparties, other financial market infrastructure firms (such as payments systems) and insurance companies.
The consultation does not assume that a resolution regime is required for all categories, but will consult on the most effective way to deal with the institutions and infrastructures, the failure of which is most likely to have systemic implications.
Hoban said: "The proposals set out in today's consultation complement the ongoing work the Government is carrying out to reform the UK's banking sector.
"This consultation underlines the Government's commitment to maintaining the UK's position as a pre-eminent global financial centre, while also ensuring that the financial services sector is able to provide essential services to the wider economy without posing a risk to financial stability."
The consultation, will close on 24 September 2012.
15 July 2021
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1 min read
