The author of the blueprint for banking sector reforms has criticised moves by the government to water down some key elements of the proposals contained in the report by the Independent Commission on Banking
The author of the blueprint for banking sector reforms has criticised moves by the government to water down some key elements of the proposals contained in the report by the Independent Commission on Banking.
Less than an hour after the government published a white paper intended to overhaul the banking sector, Sir John Vickers, who chaired the ICB, said the government should have gone further in adopting his committee’s proposals to make the banking system safer by “ringfencing” the UKs high street banks from their riskier investment banking arms.
He stressed that the tensions in the eurozone meant that the government should press ahead with the proposals, and urged the coalition to resist any further pressure to backtrack.
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“International events keep underlining the need for fundamental reform to make banks safer and to shield taxpayers from future risk of loss,” Vickers said.
He highlighted the government’s decision to backtrack on the ICB’s proposal to put limits on the risks big banks run, measured through what is known as a leverage ratio.
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