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This is an honest report. The Financial Services Authority has highlighted its internal failures in respect of the Northern Rock and we welcome its openess and proposals for change.
Banking in the UK is complex and international. The FSA needs to have people with comparable skills able to look clearly at the whole business rather than concentrating on one or two particular areas. The industry will work with the regulator to bring this about. However, the primary responsibility for any company lies with its management. No amount of regulation can ensure that wrong decisions are never made. The Northern Rock is one of a number of casualties around the world of the "credit crunch".
It is important for the UK banking industry that the FSA continues with its proportionate regulatory framework, using the principles based approach and with the right individuals in place. Good quality regulation and regulators benefits everyone - the economy, the banks and customers alike - we support the FSA in its efforts to improve how we can work together to ensure we are well placed to meet the challenges of the global financial market.
