Banking Reform

Tracey Crouch Excerpts

Thursday 17th June 2010 Commons Chamber

[Tracey Crouch (Chatham and Aylesford) (Con)]

I welcome the Minister’s statement on these much-needed reforms. Will he tell the House how the reforms set out today will affect the insurance sector, which shares the same regulatory regime as the banks but clearly operates very differently?

[Mr Hoban]

My hon. Friend makes a good point about the role of insurance. In this crisis, we must ensure that we distinguish between what has happened to the banking sector and the relative success of the insurance sector in withstanding the storms of this crisis. It is an important sector to the UK economy and a huge wealth generator. We need to ensure that the insurance sector, when it comes within the remit of the PRA, has the right sort of prudential regulation that recognises its strengths and challenges. It will of course be regulated as regards its relationship with consumers by the CPMA.