The Governor of the Bank of England has promised the City of London a less heavy handed, better focused form of regulation, while expressing concern over the European Commission’s plans to water down Basel III and stressing the need for higher capital and liquidity buffers.

Speaking at the Lord Mayor's Banquet for Bankers and Merchants of the City of London at the Mansion House last night, King opened his speech by asking the audience: "which aspect of financial regulation is most deserving of the adjective "tragic".