UK banks to face tougher regulation

UK banks will face tougher regulation under reforms from the country’s financial system.



UK chancellor Alistair Darling says under his proposed plans, consumers will get more protection from unfavourable bank policies.



He also says consumers will receive a national money advice line and a strengthened deposit protection scheme.



According to the Chancellor, banks will be required to hold more capital to cover any future losses.



He says more powers will be given to regulators to take over failing banks.



Mr. Darling says the Financial Services Authority now has powers to penalise banks if their pay policies create unnecessary risks and are not focused on the long-term strength of their institutions.