The Bank of England is expected to tear up the FSA rulebook and adopt a new approach to policing banks and financial institutions when it takes on the role of prudential regulator.
Details of its new approach will be unveiled tomorrow at a conference on banking regulation at the QE2 Centre in Westminster, the Daily Mail reports. It is expected the new Prudential Regulatory Authority (PRA) will abandon the present ‘traffic light' system used by the FSA. Instead, it will use a new matrix which will focus on financial institutions which currently sit in the ‘amber' category, where there are questions about capital adequacy and business models. The PRA, which will be headed by Hector Sants, the current FSA chief executive, together with Andrew Bailey from the Ban...
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