Banking: Accounting Standards — Question

Part of the debate – in the House of Lords at 2:45 pm on 19th March 2012.

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Photo of Lord Flight Lord Flight Conservative 2:45 pm, 19th March 2012

My Lords, in reply to a question on 19 December the Chancellor of the Exchequer advised that there needed to be a debate about the role of IFRS in the banking crisis. On 19 January, the head of financial stability at the Bank of England commented in a speech that banks needed accounting standards other than IFRS. Does the Minister agree that IFRS contributed to the banking crisis, as it served both to exaggerate profits and capital in good times and vice versa in bad times, and is in need of review?