The BBA said:
"The programme of regulatory reform in the UK is now well underway. Today's white paper is an enormously significant milestone.
"Regulatory change carries with it real consequences for consumers and businesses. This is not an abstract set of rules for an industry. It is fundamental to financial stability and economic recovery: it ensures standards of discipline in the financial markets and safeguards the international reputation of the City as the world's financial centre - and one of the biggest contributors to the UK economy.
"It is therefore essential to everyone in the UK that this process results in the creation of the right regulatory institutions with the right powers - and crucially with the right communications in place to ensure that future problems are identified, anticipated and acted upon quickly.
"The UK's banks will now consider this significant document closely and will respond in detail."
Note to editors
HM Treasury today issued the consultation paper A new approach to financial regulation: the blueprint for reform. It sets out the detail of the Government's proposals, including the creation of the new regulatory institutions.
Key facts on banking
327 banks make up the UK banking sector. It is the third largest in the world for banking deposits and the largest in Europe.
Banking systems allow, every year, for more than
- 2 billion credit card purchases,
- 6.5 billion debit card payments,
- 6 billion electronic account transfers and
- 2.8 billion ATM withdrawals,
- whilst operating 150 million accounts for individuals and businesses.