The House of Lords Economic Affairs Committee has published a report on banking regulation and supervision. The report criticises the poor definition of the roles and responsibilities of the tripartite authorities under their current MOU. It highlights failures in macro-prudential supervision as a contributory cause of the crisis and criticises FSA for focusing on consumer protection to the detriment of attention to the risks banks’ activities were creating. The Committee recommends change, but does not see a need for a rush for new legislation. It wants to concentrate on how the tripartite system works, with particular focus on financial stability. It wants BoE to take back macro-prudential supervision with executive powers for the Financial Stability Committee. It also said regulators should focus more on banks’ risk models, including submitting the models to regular stress testing. It makes several more recommendations, including greater oversight of UK branches of multinational banks and the generally agreed reforms to capital and liquidity. It says agency ratings should be removed from capital regulations.