BOE's King Says FPC Needs Proper Powers to Tackle Systemic Risk
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Bank of England Governor Mervyn King said the Financial Policy Committee needs sufficient powers to ensure it can deal with risks to financial stability.
“The committee’s ability to take actions to mitigate systemic risks will hinge on the powers granted to it by Parliament,” King said in the forward to a research paper on macroprudential tools published by the central bank in London today. “Without the right instruments at its disposal, the committee will not be able to take prompt, effective action.”