Darling said a Treasury paper will be published shortly, outlining the reforms to financial regulation including action to reform corporate governance and remuneration at banks to avoid undue risk taking.
He will also recommend improved regulation of capital and liquidity so that banks do not “over-extend” themselves. Darling said he wants to increase transparency and achieve a single set of accounting rules so that the risks the banks take are clear.
He said: “It will also propose action to reduce the impact of the failure of financial firms, protect and support consumers, improve efficiency and competition in financial markets, as well as strengthening regulators’ powers.”
KPMG global head of retail banking David Sayer says the paper will consider solutions for the UK to the questions raised in the Turner review.
He says: “There is likely to be considerable agreement on the need for change, but there is unlikely to be a consensus on the precise solutions.”
CMS Cameron McKenna partner Simon Morris says Darl- ing’s comments confirm that the “Government will be pursuing a domestic solution to regulatory issues, pre-empting demands from Europe for fund- amental reform in the structure of regulation”.