You are here: Home - Saving & Banking - News -

Another financial crash may come ‘sooner rather than later’ – Mervyn King

0
Written by:
29/02/2016
Lord Mervyn King, the former Bank of England boss, has warned that another financial crisis is certain and will probably come "sooner rather than later".

The governor of the UK central bank during the last financial crisis Mervyn King, who stood down in 2013, said reform of monetary and banking systems may help prevent the crisis, reports the BBC.

But he added that failure “to tackle the disequilibrium in the world economy makes it likely that it [a crisis] will come sooner rather than later”.

King, 67, who headed the bank between 2003 and 2013 wrote in his book The End Of Alchemy: Money, Banking And The Future Of The Global Economy, that the 2008 crisis was the fault of the financial system, not individual bankers.

“The crisis was a failure of a system, and the ideas that underpinned it, not of individual policymakers or bankers, incompetent and greedy though some of them undoubtedly were,” he wrote.

To tackle the disequilibrium in the world economy, he suggests raising productivity as well as reforming the banking system.

“Only a fundamental rethink of how we, as a society, organise our system of money and banking will prevent a repetition of the crisis that we experienced in 2008,” he said.

He added that global central banks are trapped in a “prisoner’s dilemma”, whereby they are unable to raise interest rates in case they derail economic recovery.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • Cost of taking a mortgage holiday revealed: The average cost of a 3 month #mortgagepaymentholiday is £665.08, and… https://t.co/gWHI7Lo8zl
  • RT @BlackstockPR: "The government needs to grasp that mounting rent arrears are a serious economic issue that will impact many buy-to-let l…
  • "The government needs to grasp that mounting rent arrears are a serious economic issue that will impact many buy-to… https://t.co/KXusvi1RvR

Read previous post:
Consumer credit grows rapidly in January

Credit card and loan debt grew by £1.6bn in January, up 9.1 percent on a year ago, official Bank of...

Close