Speaking to the Association of Corporate Treasurers, Sants said that the evidence of this crisis strongly supports the importance of having an integrated supervisor that can make a judgement call on the overall risk in an institution.
He said: “How could you judge risks in Northern Rock and HBOS without taking a view of product and selling risk as well as funding?
“As I have argued, the area of structure which is really important is macro-prudential. The macro-prudential gap needs to be filled. This can be done by strengthening the role of the Bank of England and closer collaboration between the Tripartite Authorities, although a structure for doing so has yet to be determined.”