Mortgage help for struggling families

Dec 4 2008 by William Green, The Journal

Bank rescue

A RANGE of measures to strengthen regulation of the UK banking sector were outlined in the Queen’s Speech.

The Banking Bill set out plans for the Bank of England and the Financial Services Authority to have greater powers to step in early to help failing banks, while confirming greater protection for depositors.

Banks that do not could be forced to pay hefty fines imposed by the FSA, which is due to be appointed to police the rules.

Fears have been growing over the consequences of the lending clampdown among banks.

The statement on the Banking Bill said it would strengthen the framework for protecting bank depositors, enhance financial stability through measures to reduce the likelihood of banks getting into difficulties.

The Queen said: "The strength of the financial sector is vital to future vibrancy of the economy.

"Therefore, legislation will continue to be taken forward to ensure fairer and more secure protection for bank depositors and to improve the resilience of the financial sector."