He said:

"What we need is a full investigation into whether the tripartite arrangement between the FSA, the Bank of England and the Treasury is now fit for purpose.

"In light of the Northern Rock crisis and the wider credit crunch what is actually needed right now is an inquiry into the crisis before any additional powers are announced for the FSA. This has been proposed by the British Bankers Association and Mr Darling should heed that advice.

"What we need is a meaningful and transparent regulatory framework with the core purposes of encouraging confidence in the banking sector and providing robust protection for customers at its foundation.

"Mr Darling also appears to be jumping the gun since the consultation into protecting depositors has not been published or debated yet."

ENDS

Notes:

In early December Mr Hosie submitted a formal response to the UK Government's consultation on banking Reform - Protecting Depositors which highlighted three key elements regarding depositor protection crucial to maintaining the confidence of consumers:

1. A deposit guarantee scheme which can protect in full the vast majority of retail depositors.

2. Widespread knowledge amongst consumers of their entitlements under any deposit guarantee scheme.

3. A clearly established framework for prompt corrective action, which will allow an appropriately empowered authority to represent depositors' interests, and to ensure access to deposits within a reasonable timeframe.