LONDON – Bank Of England Deputy Governor Paul Tucker, whose
brief includes financial stability, said Thursday that the financial
system needs bank resolution plans and tools in order to let distressed
financial institutions to fail and so ensure the market better regulates
itself.
Speaking at a roundtable event of banking supervisors Brussels,
Tucker said:
“The executive arm of financial authorities needs to do very
serious planning so that we could, in earnest, put these institutions
through our resolution regimes if we needed to,” he said.
“The reason we want these tools is so there is a policy of not
rescuing banks in the future. This is where we are moving to. We want
market discipline to be the basis of the financial system,” he added.
–London newsroom: 4420 7 862 7492; email: wwilkes@marketnews.com
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