In this report the Treasury Committee calls on the Independent Commission on Banking to address a number of concerns that have been raised about its proposal to ring-fence retail banking - including its effect on the competitiveness of UK banking and the cost of credit to business. The Commission should also look at how corporate governance in banks could be improved to enhance the stability of the financial system. The MPs urge the major banks to place any objections or concerns they have about the ICB proposals fully in to the public domain. A final ICB report based on private discussion and agreement with the banks rather than rigorous public scrutiny would lack public credibility and acceptability. The Committee is also concerned that the option of full structural separation of retail and investment banking has not received sufficient analysis. The ICB should provide further details as to the costs and benefits of this reform option and why it decided against full separation when proposing ring-fencing as the lead option in its interim report.Wea#39;ve established in the UK a new tripartite regulatory structure under the Bank of England. ... on top to replace the old subordinated debt, I think, in terms of core equity, if we get much above 10%, we risk costs to the economy ... Q2l2 Chair: Mr Flint, what proportion of your bank would be in the ring fence, on the definition of ring fence you have provided to us? ... Douglas Flint: Today, technically, debt being issued is bail-inable because the Bank of England has the power to do that -aanbsp;...
|Title||:||Independent Commission on Banking|
|Author||:||Great Britain: Parliament: House of Commons: Treasury Committee|
|Publisher||:||The Stationery Office - 2011-07-22|