§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer if he will give the Bank of England power to inspect the operations and control structures, and audit the accounts of, all overseas operations of subsidiaries of British banks.
§ Mr. Nelson[holding answer 2 March 1995]: The Banking Act 1987 already gives the Bank of England extensive powers to supervise the worldwide operations of UK authorised institutions. These powers do not, however, apply directly to non-banking subsidiaries. Their supervision requires co-operation with other relevant regulators. As my right hon. and learned Friend, the Chancellor told the House on Monday 27 February, he has asked the Board of Banking Supervision to investigate fully and urgently all aspects of the Barings episode and to report back to him. Any lessons to he drawn must await a thorough analysis.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer, what proposals he has for setting up an independent regulator with its own inspectors and audit teams to regulate banking.
§ Mr. Nelson[holding answer 2 March 1995]: The Bank of England already discharges these responsibilities.