Plan for bank risk rethink

Huddersfield Daily Examiner (Huddersfield, England), Oct 28, 2008

UK BANKS could face a raft of checks and balances to avoid a repeat of the current crisis in a fundamental rethink of risk, the Bank of England said today.

The industry expanded too far in the good times without strong enough funding to cope when things turned sour, the Bank's Financial Stability Report (FSR) said.

The warning comes after a month of turmoil which has seen banking bail-outs across the globe, including a pounds 400bn rescue package for UK banks.

Banks should now be reined in through a series of measures to ensure they have enough funds to survive without help during the next downturn, the FSR said.