BANKING REFORMS REPORT PUBLISHED
12 Sep, 2011
The Independent Commission on Banking’s final report out today.
The Independent Commission on Banking’s (ICB) final report has been published today, confirming recommendations for the largest banking reforms in decades.
The ICB has recommended that banks separate their high street banking sections from the ‘high risk’ investment divisions, to help protect the public from another financial breakdown.
The ICB has called for the changes to begin implementation by 2019, and has said that they would ‘make it easier and less costly to resolve banks that get into trouble’.
The report and the proposed regulatory changes were welcomed by the Chancellor, George Osborne, who said: “I think the commission has done a very good job.
“[It] has tackled that big question that we face in Britain, which is how can we be a home to successful banks that compete around the world, but lend to British families and British businesses, but at the same time protecting us as taxpayers from the cost of them going wrong, and not ending up with a multi-million pound bill when the bank collapses.”
The report also recommended that banks have loss-absorbing capacity of between 17-20% of their risk-weighted loans and investments, according to the BBC.