London in need of better regulation, says Bischoff
City grandee Sir Win Bischoff today said better regulation of the banking system was needed to keep London and the UK competitive.
The former Citigroup chairman, and author of the Bischoff report on Britain's financial services competitiveness published this morning, said: "Regulation and supervision are a crucial part of retaining competitiveness in the financial services sector."
The credit crunch and economic crisis have forced the Government to provide hundreds of billions of pounds of support to the financial system.
It has also prompted a crackdown on the way banks behave and demands for tighter regulation.
Writing in the Wall Street Journal, Sir Win said: "There are important lessons to be learned, by regulators, governments and by the banks themselves. But we believe the UK can play a key role in setting a new global standard.
"No one wants regulation that stifles innovation or prevents wealth creation. But at the same time, no one wants to see banks taking excessive risks that can bring the whole system down. This is not an easy balance to strike but it is one we need to get right."
"Across the world, we are seeing the most disruptive financial crisis in generations, which has completely shaken up the global financial services industry," he said.
"Our goal is to maintain a competitive and vibrant sector in Britain.
"At the core of our analysis is the realisation that maintaining Britain's position as a world centre for
financial services must not come at the expense of other countries, but by working in partnership with them."
