August 13, 2012 - Pressing ahead with reforms in the banking industry represents a crucial part of assisting the UK's economic recovery.

That is the view of Mervyn King, governor of the Bank of England (BoE), who believes there is still some way to go before confidence in the country's financial system is restored.

During an article written for the Mail on Sunday newspaper yesterday (13 August), Mr King explained that the eurozone debt crisis is continuing to have a major impact on the UK.

"If the rest of the world were growing normally, the rebalancing and recovery of our economy would be much easier ... but it isn't," he noted.

However, the governor went on to say that the country's long-term economic performance will depend on measures such as changing the banking sector so financiers focus on serving their customers rather than securing short-term profits.

With this in mind, he went on to say that policies such as ring-fencing retail and investment operations will help.