The Financial Services Authority has said that the focus of its Turner Review conference this week was on banking activities but the scope of the discussion was much broader in its application. A spokeswoman for the regulator said: "This includes whether there's a read-across that will apply and whether certain institutions will be systemically important that aren't banks. We want a debate about how we define systemically important institutions and that'll have a read-across to whether we talk about insurance firms."
Lord Turner said at the conference, "The Turner Review: progress towards global regulatory reform", that financial institutions other than banks faced systemic risk. In his opening presentation, he said that a startling feature of the 15-20 years leading up to the crisis had been the explosion of trading in securities and derivatives, which led to dramatic growth in bank balance sheets, driven by a huge proliferation of contract claims.
Turner said: "This proliferation
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