Europe will not dictate regulation in the UK, according to Mervyn King, governor of the Bank of England.
King was giving evidence to the Treasury Select Committee last week as part of its enquiry into financial regulation.
He was asked by a committee member if decisions on a macro-prudential level in Europe would undermine the Financial Policy Committee, which will form when the Financial Services Authority disbands in 2012.
King says: “The European Systemic Risk Board will not have the power to instruct or determine what any national body can do. It may make recommendations but they will be at a generic level.”