Regulatory and Banking Reform — Statement

Part of the debate – in the House of Lords at 5:04 pm on 16th June 2011.

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Photo of Lord Sassoon Lord Sassoon The Commercial Secretary to the Treasury 5:04 pm, 16th June 2011

I am grateful to my noble friend because this is a technical but very important area. He is completely right that there is a fundamental distinction between supervision and regulation and often texts can be loose on this. I hope that when he has a chance to read the White Paper he will see that there is extensive discussion of these areas. I refer him to the interesting remarks of the governor last night about the approach to supervision which he intends the Bank and the PRA under it to adopt in the new world, and that that should be a very different approach to supervision from what we have seen recently with the FSA. I take my noble friend's points to heart, but the short text of the announcement does not give the full flavour that lies behind it.