Financial Regulation

Part of Oral Answers to Questions — Treasury – in the House of Commons at 2:30 pm on 22 March 2011.

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Photo of George Osborne George Osborne The Chancellor of the Exchequer 2:30, 22 March 2011

The rapid increase in mortgage-backed securities and collateralised debt obligations contributed to a build-up of excessive and unstable levels of private debt in the UK in the years running up to the financial crisis. Although we would wish to see a properly regulated securitisation market reopened to help with lending, this must happen under a much more effective supervision regime. That is why we are abolishing the failed tripartite system and have restored to the Bank of England the responsibility for monitoring overall levels of debt in the economy. We have already established a new Financial Policy Committee to assess risks to the stability of the system, such as the emergence of excessive debt.