Sir Mervyn King: Another crisis is certain without reform

Posted On: 
28th February 2016

The former governor of the Bank of England has issued a stark warning about the future of the world economy, claiming that another financial crisis is "certain" unless the financial system is reformed.  

Writing in a new book, Sir Mervyn King says banks and regulators have been "colluding" to create an overly complex system of oversight.

"Without reform of the financial system, another crisis is certain, and the failure…to tackle the disequilibrium in the world economy makes it likely that it will come sooner rather than later," he writes in the book, which is being serialised in the Telegraph.

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Sir Mervyn blamed the financial crisis of 2007-08 not on individual banks or government policies, but a "general misunderstanding of how the world economy worked”.

His successor at the bank, Mark Carney, has warned of risks to the global economy, although he has also emphasised that new tougher capital requirements for banks make a repeat of 2008's credit crash unlikely.