29th February 2016
Mervyn King, who quit his role as Bank of England governor in 2013 has warned that another financial crisis is “certain”, and may come “sooner rather than later”.
King, in a new book, urges that an overhaul of the monetary and banking systems may however stop another crisis happening, according to BBC News.
He said however that failure “to tackle the disequilibrium in the world economy makes it likely that it will come sooner rather than later”.
King, who was the Bank’s governor during the global financial crisis of 2008-09, in his new book, The End Of Alchemy: Money, Banking And The Future Of The Global Economy, claimed the 2008 crisis was the fault of the financial system, not individual bankers.
He wrote: “The crisis was a failure of a system, and the ideas that underpinned it, not of individual policymakers or bankers, incompetent and greedy though some of them undoubtedly were.”
King believes that in order to improve the global economy, productivity must be raised and the banking system needed reform.
He said: “Only a fundamental rethink of how we, as a society, organise our system of money and banking will prevent a repetition of the crisis that we experienced in 2008.”