News Article - 11 June 2008
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The governor of the Bank of England has stated that the current economic downturn looks set to continue.

Claiming that crisis is "not yet over", Mervyn King outlined his plans for his second term at the helm of the central bank and said that financial stability for Britain would remain his priority.

According to Mr King, the current period of "financial turmoil" around the world will continue, though he gave no specific information on UK interest rates or economic potential.

In a speech to the British Bankers' Association (BBA), he stated: "During my second term as governor I would like to see us establish a framework for financial stability that is on as sound a footing as the one we have successfully established for monetary stability."

Mr King believes that plans to overhaul Britain's banking system will discourage financial institutions to take excessive risks.

Britain's small firms are advised that good accounts software packages can significantly improve their ability to manage their finances in the wake of the current economic downturn.

A new facility is being launched by the central bank to provide financial institutions with the ability to swap high-risk loans for more liquid borrowing.

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