Mervyn King urges reform to avert new global financial crisis

A new global financial crisis is certain to occur and, without reform, it is likely to happen sooner rather than later, according to former Bank of England governor Mervyn King.

Mr King, who headed the Bank of England when the world’s financial system almost collapsed in 2008 and 2009, said only a fundamental rethink of the monetary and banking systems could avert another crisis.

“Without reform of the financial system, another crisis is certain, and the failure ... to tackle the disequilibrium in the world economy makes it likely that it will come sooner rather than later,” Mr King said in an extract of his new book published by The Sunday Telegraph newspaper.