What’s been done to fix the global financial system?
A decade on since the start of the crisis, what’s changed?
After the crisis hit, the G20 – made up of the leaders and central bank governors from 20 major economies – set up the Financial Stability Board, which is tasked with monitoring the global financial system and making recommendations to make it serve society better.
Since then, various reforms have taken place. The video below summarises these changes: from the amount of ‘capital’ banks need to have, to new rules on bankers’ pay. While there is more work to be done, the video argues that the global financial system is today safer, simpler and fairer than it was a decade ago:
Other KnowledgeBank guides explain more about how much capital banks need to have and how taxpayers are no longer on the hook in the event of a bank failure.
Another important change taking place throughout 2017 and 2018 is that large UK banks will legally separate or ‘ring-fence’ retail banking services from the rest of their business. This guide explains these changes and how they might affect you.
Find out more
- Click here to find more about the Bank of England’s work to support the stability of the financial system.
- Find out more about the G20 and the Financial Stability Board.