Sir Mervyn King: Eurozone biggest threat to banks

The governor of the Bank of England, Sir Mervyn King, has renewed calls for reform of the banking industry.

Sir Mervyn said that more money from banks' shareholders should be "on the line", to make them more careful in choosing to whom they lend.

He also suggested that the biggest threat to the stability of banks at present "stems from the trouble in the euro area".

Sir Mervyn's comments came as he gave the Radio 4 Today Programme's annual lecture in London.