BoE’s Tucker calls for radical simplication of banks

There needs to be a radical simplification of some banking group structures and more information given to the central bank about how banks would fund themselves in an emergency, Bank of England Deputy Governor Paul Tucker said on Tuesday.

"Banks must structure and run themselves to permit orderly wind down. And they must invest to provide the authorities with the information they need to do so," Tucker told a banking conference in London.

Tucker said any bank deposit protection insurance scheme needed to be pre-funded and there needed to be "a radical simplification" of some structures to minimise risk to the financial system at large.

His speech did not touch on monetary policy issues.