Independent Commission on Banking final report: recommendations

Front Cover
The Stationery Office, Sep 13, 2011 - Business & Economics - 360 pages
0 Reviews
The Independent Commission on Banking's final recommendations aim to create a more stable and competitive basis for UK banking for the long term. The result would be a banking system that is much less likely to cause, or succumb to, financial crises and the huge costs they bring; is self-reliant, so that the taxpayer does not have to bear the losses that banks make; and is effective and efficient at providing the basic banking services of safeguarding retail deposits, operating secure payments systems, and efficiently channelling savings to productive investments in the economy. Stability is crucial and UK banks should have more equity capital and loss-absorbing debt - beyond what has so far been internationally agreed - and their retail banking activities should be structurally separated, by a ring-fence, from wholesale and investment banking activities. The Commission also address competition, which has not been properly effective in UK retail banking. They recommend a seamless switching system based on redirection for personal and small business current accounts, free of cost and risk, complemented by measures to enhance transparency. The new Financial Conduct Authority should have a clear duty to promote effective competition. Structural reform should be complete by the Basel implementation date of 2019 at the latest. These reforms would result in better-capitalised, less leveraged banking more focused on the needs of savers and borrowers in the domestic economy. At the same time UK banks would be free to flourish in global markets, but without UK taxpayer support.
 

What people are saying - Write a review

We haven't found any reviews in the usual places.

Contents

Retail ringfence
9
Lossabsorbency
79
Economic impact and implementation 123
84
Overview 153
2
Assessment of the market 165
12
The economic impact of the Commissions financial stability
10
RECOMMENDATIONS
4
GLOSSARY AND ANNEXES
15
Summary of responses to the Interim Report 253
25
Response to critiques of the competition analysis in
13
Copyright

Common terms and phrases

Bibliographic information