Speaking at the Lord Mayor’s City Banquet yesterday, he said that failing to implement a more robust capital and liquidity regime for banks globally could allow a similar crisis to develop in years to come.
He said the banking industry needed to restore trust in the vital role that it performs. Banks should be focusing on their core functions for the economy and society and considering whether they accept business that falls outside this which may mean that banks will be lower return, but also lower risk, investments.
He added: “Bank investments might become more boring, but after the last year, there’s a lot to be said for boring”.
Lord Turner said the City should continue to be a major provider of wholesale financial services to Europe and the rest of the world.
He added:”It is possible to say that, but also recognise that not all financial innovation is valuable, not all trading activity plays a useful role, and that a bigger financial system is not necessarily a better one.”
