LONDON — Britain’s chancellor of the exchequer, George Osborne, said Monday that regulators for the first time will get the power to break up banks, hardening legislation aimed at making lenders safer. He would also open up industry payment systems.
In a speech, Osborne said the breakup powers will be added to the banking reform bill to be presented to Parliament this week. Authorities would be able to split up an institution that does not abide by rules to insulate retail operations from investment banking. Bank payment systems would be regulated to make the system more responsive and allow new entrants into the industry.