Banking Bill

I beg to move, That the Bill be now read a Second time. Yesterday I set out the Government's proposals to restore confidence and stability in the banking system now, and I am pleased to report that during the course of yesterday other countries in Europe, and today the United States, have made announcements along similar lines, showing that countries all over the world are now acting in order to help to stabilise and rebuild the banking system, which is absolutely essential. Yesterday's announcement was significant and important, and it is also important that it is followed through throughout the world as we get through what is undoubtedly an extremely turbulent time. Our proposal yesterday included comprehensive plans on both liquidity and capital, and I said yesterday that eight of our major banks and our major building society have signed up to that. I also said yesterday that HSBC had announced last Friday a transfer of £750 million of equity capital into its UK subsidiary, and I want to make it clear that it has already done that. I also said yesterday that we would take steps to strengthen the supervisory and regulatory system. That is not in this proposed legislation, but I am in no doubt that we need to learn lessons not only in this country but across the world in relation to improvements we may need to make in the regulatory system, and we will bring forward proposals after I have received recommendations from Lord Adair Turner, who chairs the Financial Services Authority.