BoE's Tucker: Banks should pay crisis levy -paper

LONDON Sun Oct 4, 2009 9:04pm EDT

LONDON, Oct 5 (Reuters) Deputy Governor of the Bank of England Paul Tucker has suggested a levy on banks that could be used to pay the costs of future financial crises, the Daily Telegraph reported.

Tucker said the threat of a levy could act as a deterrent against reckless behaviour in the banking sector, the newspaper reported.

"If banking sees that in systemic crises, the banking industry would have to pick up the bill, I would like to think that would change incentives and behaviour," the Telegraph quoted him as saying.

Tucker, who is in charge of the Bank of England's financial stability functions, made the comments at an Institute of International Finance (IIF) conference running alongside the International Monetary Fund annual meeting in Istanbul, the Telegraph said. (Reporting by Jon Carter; Editing by Jan Paschal)

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