|
|
Reform of the scheme guaranteeing savers' deposits must not distract policymakers from learning the real lessons of the Northern Rock affair, says the British Bankers' Association.
The Bank of England's role in the markets, the amount of day-to-day money banks need to hold and the working of the Lender of Last Resort process all need to be scrutinised before further policy changes are made, said BBA Chief Executive Angela Knight CBE.
"Financial firms need to be involved at the earliest stage in these discussions." Mrs Knight said. "We still need urgently to understand why our regulatory framework did not break the chain of events which resulted in such dramatic scenes outside branches of a British bank."