UK Treasury Report on reforming financial markets
09 July 2009
The report sets out the Government’s analysis of the causes of the financial crisis, the action already taken to restore financial stability and the regulatory reforms necessary to strengthen the financial system for the future.
The report sets out the Government’s analysis of:
- the causes of the financial crisis which has led to the world economy being hit by the worst global economic downturn for the last 60 years;
- the actions already taken to restore financial stability; and
- further reforms necessary to strengthen the financial system for the future.
The Government has led efforts to respond to the immediate challenges of the financial crisis by restoring stability, and reforming banking regulation.
The paper also presents a number of core issues to which the Government's strategy for regulatory reform must respond:
- first, strengthening the UK’s regulatory institutional framework, so that it is better equipped to deal with all firms and, in particular, globally interconnected markets and firms;
- second, dealing with high impact firms that may be seen as being “too big to fail”, through improved market discipline and through improved supervisory focus on such firms;
- third, identifying and managing systemic risk as it arises across different financial markets and over time; and
- fourth, working closely with international partners to deliver the global action required to respond to the lessons of the financial crisis.
