In the Chancellor's annual Mansion House speech, given on 17 June, he stressed the importance of the role of boards of banks. He said bank boards need to be staffed with people with the right skills and experience to manage themselves effectively, and senior managers need to be able to ask the right questions. He highlighted the Treasury's White Paper responding to the Turner Review, which will be published next week. He explained why governments had to step in to save many banks from failing. He said solutions to the problems of the current regulatory regime must focus on:
- better corporate governance;
- greater transparency;
- internationally agreed frameworks;
- better systems for dealing with bank failure; and
- greater focus on system-wide risks.
He welcomed the US proposals to consolidate their regulators. Although he thought the de Larosiere report was good, he said strong national regulators were still important.