UK MPs Seek Further Details On BOE Financial Policy Committee

LONDON – The UK Treasury Select Committee has launched
an investigation the government’s proposed reform of financial
regulation.

The committee said it would seek written evidence of how the BOE
Financial Policy Committee will work. Under the proposals, the FPC will
be able to deploy a potential array of macro-prudential tools to limit
swings in the credit cycle.

The TSC said it would seek information on what macro-economic tools
the FPC will have to carry out its role.

The FPC will be charged with maintaining the overall stability of
the financial system, while a Prudential Regulation Committee will look
after specific institutions.

Mervyn King, the governor of the Bank of England, will chair the
FPC. In comments to the Treasury Committee today, King rejected ideas
that the new committee would make life more difficult for the Monetary
Policy Committee. On the contrary, King argued, it would make the MPC’s
choices on rates easier.

–London newsroom 0044 20 78627491; email: wwilkes@marketnews.com

[TOPICS: M$B$$$,M$$BE$,MT$$$$]