Osborne to give BoE more powers, reports

Date: Wednesday 16 Jun 2010

Chancellor George Osborne is expected to announce that the Bank of England will be handed new powers to help it manage risks to the UK economy.

Osborne looks set to make the announcement at his annual Mansion House speech later today as part of a major shakeup of the UK financial sector to prevent another credit crisis.

The Bank of England could be given powers to restrict bank lending to help avoid another housing bubble and force banks to hold more or less capital depending on the economic cycle.

The chancellor is also expected to confirm that Britain's banks will be hit with a new levy.

More details on the proposals are likely to be announced in next week's emergency Budget.

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