Credit crunch: Public policy issues
Resources to help preparers and auditors of financial statements to address these risks and to appreciate the wider public policy issues raised by the credit crunch.
Financial services
Turner report issued
On 18 March 2009, the FSA published the Turner Report, which reviews and makes recommendations for reforming UK and international approaches to the way banks are regulated. The report’s recommendations cover a wide range of disciplines, including financial services regulation, financial reporting and auditing. The Financial Services Faculty will be preparing the ICAEW’s response.
UK Parliamentary Inquiry – The Banking Crisis
In May and June 2009, two major scrutiny committees in the House of Commons and the House of Lords of the UK parliament, covering financial services and the banking industry, both produced landmark reports on the policy implications of the global banking crisis. The committee recommendations cover analysis of the role of boards, shareholders, remuneration and risk structures, credit rating agencies, auditors, accounting standards and the media in the banking crisis, and the effectiveness of the UK ‘tri-partite’ supervisory structure for financial services and banking.
- The House of Commons Treasury Select Committee report ‘Reforming corporate governance and pay in the City' - 15 May 2009
- House of Lords Economic Affairs Committee report ‘Banking Regulation and Supervision’ - 2 June 2009
- The ICAEW response to UK Parliamentary inquiry into the banking crisis – June 2009
HM Treasury financial support statement
On 8 October 2008, HM Treasury issued a statement detailing the financial support to be made available to UK banks and building societies to ensure the stability of the financial system and to protect ordinary savers, depositors, businesses and borrowers.
Priorities for the EU to stabilise financial markets
On 7 October 2008 The European Union council of finance ministers (Ecofin) published a statement outlining the priorities for the EU to stabilise financial markets.
30 recommendations to help restore confidence in financial markets
At the request of the French President, a report on the financial crisis has been prepared by Rene Ricol, a former president of the International Federation of Accountants (IFAC).
The report makes 30 recommendations in an effort to help restore confidence in financial markets. The recommendations aim to respond to two objectives: immediate solutions to face the crisis, and reforms to allow Europe to be more resilient in the future.
All sectors
The ICAEW’s Business Confidence Monitor (BCM) provides a quarterly snapshot of the state of the economy. It reflects the views of senior finance professionals working at the heart of business, across all UK regions, commercial sectors and sizes of businesses