Mervyn King to play 'bigger role' in bank regulation

The Bank of England governor Mervyn King has warned that the failure to push through reforms of the banking sector could lead to another financial crisis.

Mr King told the Daily Telegraph that banks were focusing on short-term profits at the expense of their customers.

Economic Secretary to the Treasury, Justine Greening, said the Bank of England will be playing a much bigger role in regulating the industry.