All modern economies benefit from financial markets which are efficient, fair and – above all – stable. Recent months have seen a period of sustained turbulence and instability in global financial markets, with financial firms across the world affected.
The Government, the Financial Services Authority (FSA) and the Bank of England – as well as financial firms and authorities across the world – must respond to these episodes. The Chancellor of the Exchequer announced on 11 October 2007 that he would review the existing supervisory regime, including complex areas such as the legal framework for dealing with banks facing difficulties.
The FSA and Bank of England have made similar commitments to review their actions and areas of responsibility. Internationally, the UK is working with other G7 and EU countries to identify areas where international lessons can be learnt and changes made.