UK proposes tougher rules for non-EU banks

The Bank of England has set out tougher proposals for non-EU banks to try to prevent a repeat of the 2008 financial crisis.

Non-EU banks wanting to take deposits would have to set up subsidiaries in the UK and face stricter rules.

These would then be directly regulated by the UK's Prudential Regulatory Authority (PRA).

Those not taking deposits from the public would be classified as branches, and benefit from lighter touch rules.

PRA chief executive Andrew Bailey explained the changes to the BBC.