UK minister says BoE “fully consulted” on reforms

UK Treasury minister Paul Myners said on Wednesday that Bank of England Governor Mervyn King had been "fully consulted" on the government's banking reforms.

Myners also dismissed talk of a rift between the governor and finance minister Alistair Darling over regulation.

"I don't think the Chancellor and the Governor are at odds," Myners told parliament's Treasury committee.

King said last month that he had not been consulted on the proposals and that the BoE should not be held responsible for any future breakdown in financial stability if it were given no powers to intervene.

"The Governor saw a fairly well developed version of this paper in the middle part of last week," Myners said.

"I believe the Governor and the Bank of England have been properly and fully consulted," he added.

A core measure in the plans is to formalise the existing "tripartite" supervisory set-up whereby the finance ministry, Financial Services Authority and Bank of England jointly supervise the financial markets. [ID:nL8724463]

Myners said it was not up to him to say if the governor was happy with the plans.