Accounts software could help with changes to banking sector

News Article - 17 June 2008
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Head of markets at the Bank of England, Paul Tucker, has called on regulators to put in place "credit-cycle circuit breakers" in order to slow down commercial bank lending when demand rises above a certain level.

Firms attempting to keep abreast of changes to the ways in which they are regulated can invest in accounts software to help them to meet their reporting responsibilities.

Commenting on the current downturn in the US economy, Mr Tucker declared that central bankers needed to focus their attention on preventing economic bubbles from bursting, rather than "mopping up" after them.

Discussing fiscal policy with the Chatham House thinktank, the economics expert stated: "The doctrine effectively assumes that, faced with the possibility of systemic stress, the monetary authority can always reduce its policy rate without taking risks with inflation. The current conjuncture tests that assumption."

Making a speech in April, Mr Tucker asserted that Britain faces further financial turbulence over the coming months, as the effects of the credit crunch continue and the Bank of England attempts to balance sluggish economic growth with the need to maintain control of inflation rates.

The chancellor Alistair Darling is expected to use a speech this week to announce reforms of the current financial management model in Britain and firms attempting to keep abreast of changes to the ways in which they are regulated can invest in accounts software to help them to meet their reporting responsibilities.

According to the FT, Mr Darling plans to alter the tripartite system put in place by Gordon Brown a decade ago, which places responsibility for managing the economy during a financial crisis on the Bank of England, the Financial Services Authority and the Treasury.

The chancellor's Mansion House speech tomorrow will outline plans by the government to improve the stability of Britain's banking industry and launch details of a new Banking Reform Bill.

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