"We welcome the readiness of the FSA to question past policies and actions. It is appropriate that the FSA should be focussing on liquidity and capital requirements and we urge the FSA to concentrate its efforts on those areas of greatest systemic risk.
"We agree with Lord Turner that there were insufficient challenges to the assumptions of rational and self-correcting markets.
"On product regulation, it's good to see that the FSA has identified the drawbacks of regulating mortgage products; restrictions through regulation could further stifle mortgage lending.
"The BSA looks forward to engaging constructively with the FSA and participating in the further debate about the implementation of Turner's proposals."
