Bank 'learnt lessons' from BCCI

THE GOVERNOR of the Bank of England, Robin Leigh-Pemberton, said last night that the Bank had lessons to learn from the Bank of Credit and Commerce International affair, but again rejected allegations that the Bank was involved in a cover-up.

'I totally reject the offensive and wholly unfounded allegations . . . that the Bank was somehow party to a cover-up, or colluded with BCCI, or even that our officials took bribes,' Mr Leigh- Pemberton told the annual Lord Mayor's banquet in London.

He said that if BCCI had been closed during 1990 when, on the information available, there was every prospect of a successful remedy, the central bank would have been pilloried for causing unnecessary loss to depositors.

The Bank of England was censured by the Bingham report on the closure of BCCI.

Mr Leigh-Pemberton said there had been a strengthening of the Bank's supervisory team and structures. He said the measures were not designed to change the overall approach to supervision but to ensure that the Bank was more sensitive to any suggestion of malpractice.