The Bank of England will introduce sweeping changes to its supervisory and surveillance systems, aimed at guarding against a repeat of bank collapses such as Barings and BCCI. Following a review by the international consultancy firm, Arthur Andersen, the central bank said it would set up three new divisions and make other 'extensive' alterations to its supervision and surveillance systems. The bank said the changes would add about 25 per cent to its annual spending on supervision - currently GBP35 million (about HK$419.65 million) - over three years. About 40 to 45 extra staff would be needed, mainly recently retired senior bankers with current market expertise, to carry out supervision. Another 55 to 60 staff would be needed for general day-to-day operations. The bank intends to develop co-operation with other regulators in Britain and abroad.