Banks' accounting standards are key to economy, Turner says

Adair Turner, chairman of the U.K. Financial Services Authority, said it is imperative for regulators and setters of global accounting standards to work together to develop standards for financial institutions. "No other sector of the economy is remotely comparable to banking in its capacity to be a driver of economic volatility rather than a victim of it," Turner said. "Prudential regulators, central banks and economic policymakers have a vital interest in the decisions of accounting standard setters in relation to bank accounting standards, which doesn't apply between regulators and accounting bodies in any other sector of the economy."

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