Britain calls for monitoring global banking system in financial crisis

MANCHESTER, Britain, Sept. 22 (Xinhua) -- British Chancellor of the Exchequer Alistair Darling said here on Monday that Britain is putting in place a tougher financial system and works to strengthen the supervision of the banking system both at home and abroad.

Citing "the unprecedented economic challenges in decades" Britain has weathered through recently, Darling explained to the delegates attending the five-day Labor Party Conference that the government has authorized the Bank of England to inject more than 100 billion pounds (180 billion U.S. dollars) to help stabilize the banking system.

"It's essential to enable the banking system to function properly. It's essential for our economy, for business, for mortgage payers and for jobs," he said.

He also calls for the need to strengthen global supervision of the banking system, making it easier to intervene if a bank gets into trouble and giving new powers to the regulators.

The Chancellor also said that Britain will introduce a new banking reform bill in the Commons within two weeks to facilitate a tougher and effective financial regulation.

Britain was the first major economy to ban the speculative practice of short selling to help bring calm back to the markets, Darling said.

Although short selling has undermined confidence in financial companies in recent weeks, the Chancellor believed it was not "the prime cause of the present financial turmoil."

He pledged that the government would deal with any weakness found in the financial system and work with the Financial Services Authority to implement more effective and prudent system across the world.

Against the backdrop of a possible "coup" among Labor members of the Parliament and declining support for the ruling Labor among the voters, Darling showed his solidarity with Prime Minister Gordon Brown, saying "we have the right Prime Minister, the right team and the right policies" to help the country through the current economic turmoil.

"We are ready to grab the opportunities which globalization brings as well as cope with its risks," he said, reassuring the public that the country is in much better shape now to weather the global storms.

"Our economy is strong. We have historically low levels of inflation and high levels of employment," noted the Chancellor.