By Marcus Leach

The Bank of England's newly formed Financial Policy Committee (FPC) will hold its first quarterly meeting this Thursday.

The aim of the committee is to take action against banks and other financial organisations if it feels they are taking undue risk.

Mervyn King, governor at the Bank of England, said that the FPC will play a crucial role in helping overcome 'the obsession with detail', which he goes on to say is preventing the bigger picture being seen.

Following their first meeting the FPC will publish its first report on June 24th.

"Until we find a solution to the 'too important to fail' problem, the size of our banking system will remain too large for the UK taxpayer credibly to support in future," Mr King said.

This comes fresh off the back of Chancellor George Osbourne announcing the ring-fencing of banks to protect their separate divisions from high risk investment banking.

The role of the FPC, in Mr Osbourne's eyes is to "monitor overall risks in the financial system, identify bubbles as they develop, spot dangerous inter-connections and deploy new tools to deal with excessive levels of leverage before it is too late".