The boom in banking owed more to a mispricing of risk than a rise in productivity that existing measures of performance point to, Andy Haldane, the executive director responsible for financial stability at the Bank of England, has said.

Haldane told an audience at a London School of Economics conference in London on Wednesday that the measurement of banking's contribution to the national accounts belied the fact that underpinning the "golden era" of finance was "excess returns that were driven