David Cameron, the leader of the opposition Conservative Party in the UK, has called for greater co-operation between the Bank of England and the financial services regulator in establishing banks' capital requirements, which have been criticised for allowing excessive borrowing during economic booms.

Addressing journalists and financial professionals in London this morning, Cameron said the Bank of England should report to the Financial Services Authority on the economy's overall indebtedness, and the FSA would be obliged to take this report into account in setting capital adequacy levels.