Banking industry 'needs global regulation'

An industry analyst has called on the EU to press for a global regulatory framework for the banking sector.

Michael Baxter, economics analyst at Investment and Business News, said that the EU could help to establish a ’global system of standards and regulation’ that would ensure that the incidents leading up to the credit crunch do not happen again.

He made his comments following the Treasury Committee’s response to the proposals for a system of financial regulation in the EU put forward by the European Commission.

’Europe is just part of the overall global economy,’ Mr Baxter said.

’It would be a mistake if the EU sets internal rules for the European member states, without having the rules rolled out internationally.’

The EU proposals, which were released in September and include the creation a European Systemic Risk Board to identify future risks, have caused concern among certain sections of the financial community in the UK.

John McFall, chairman of the Treasury Committee, told the BBC that the EU has been too hasty in its timetable for regulatory reform.
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