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Author: Independent Commission on Banking
Publisher: The Stationery Office
ISBN: 9780108510984
Category : Business & Economics
Languages : en
Pages : 364
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Book Description
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.
Author: Independent Commission on Banking
Publisher: The Stationery Office
ISBN: 9780108510984
Category : Business & Economics
Languages : en
Pages : 364
Get Book Here
Book Description
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.
Author: Great Britain: H.M. Treasury
Publisher: The Stationery Office
ISBN: 9780101825221
Category : Business & Economics
Languages : en
Pages : 82
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Book Description
In its final report the Independent Commission on Banking (ICB) recommended a package of measures, consisting of ring-fencing vital banking services and increasing banks' loss-absorbency. The Government strongly supports the ICB's objectives and dual approach. The Government agrees that vital banking services - in particular, the taking of retail deposits - should only be provided by 'ring-fenced' banks', and that these banks should be prohibited from undertaking certain investment banking activities. On increased loss-absorbency, also supported are the ICB recommendations for higher equity requirements for large ring-fenced banks, a minimum leverage ratio, loss-absorbing debt, insured depositor preference and higher levels of loss-absorbing capacity for banks that are difficult to resolve. With regards to the principle that systemically important banks hold a minimum about of loss-absorbing capacity on a group-wide basis, however, the requirement should not apply to non-UK operations where it can be shown that those operations to do not pose a risk to UK financial stability. The Government also believes that depositor preference needs further analysis and consultation. On competition, the Government also strongly supports all the ICB recommendations. The Government estimates the aggregate private costs to UK banks at £3.5bn - £8bn, producing a gross reduction in GDP of £0.8bn - £1.8bn. Against these costs though should be set the potentially much larger benefits with the ICB's recommendations yielding an estimated incremental economic benefit of £9.5bn per annum. Significantly too the Government wants to see relevant legislation completed by the end of this Parliament in May 2015 as opposed to the ICBs recommended 2019
Author: Great Britain: Parliament: House of Commons: Treasury Committee
Publisher: The Stationery Office
ISBN: 9780215050649
Category : Political Science
Languages : en
Pages : 188
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Book Description
Incorporating HC 1534, session 2010-12
Author: Independent Commission on Banking (Great Britain)
Publisher: Anchor Books
ISBN: 9781845328290
Category : Banks and banking
Languages : en
Pages : 358
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Book Description
Author: Great Britain. Independent Banking Commission
Publisher:
ISBN: 9780108510564
Category : Bank management
Languages : en
Pages : 210
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Book Description
This Interim Report sets out the Commission's current and provisional views on possible reforms to improve stability and competition in UK banking, and seeks responses to those views. The Commission's final report will be published in September. The financial crisis that began in 2007 exposed fundamental weaknesses in the global financial system and has had enormous economic costs in terms of lost output, higher unemployment and weakened public finances. The report covers the need for reform in the UK banking sector; current reform initiatives; reform options - financial stability; reform options - competition and consultation questions. One of the policy approaches discussed would be structural radicalism, for example to require retail banking and wholesale and investment banking to be in wholly separate firms. Another would be to be laisser-faire about structure and to seek to achieve stability by very high capital requirements across the board. The Commission believes the most effective approach is likely to be a complementary combination of more moderate measures towards loss-absorbency and structure.This Interim Report discusses three initiatives (beyond the continued application of general competition and merger law) that could improve competition. The first concerns structural measures to improve competition. Second, competition among incumbent banks, and between them and challengers, is blunted by the actual and perceived difficulties for customers switching accounts, by poor conditions for consumer choice more generally, and by barriers to entry. This Interim Report suggests that it may be possible to introduce greatly improved means of switching at reasonable cost, in which case the industry should be required to do this within a short timescale, and that barriers to entry may be able to be reduced. Thirdly, the Commission regards the Financial Conduct Authority proposed as part of the Government's reforms of the regulatory architecture as potentially a vital spur to competition in banking.
Author: Scotland. Parliament Economy, Energy and Tourism Committee
Publisher:
ISBN: 9781406177435
Category : Banks and banking
Languages : en
Pages : 7
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Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: Great Britain: Parliament: House of Commons: Treasury Committee
Publisher: The Stationery Office
ISBN: 9780215560902
Category : Business & Economics
Languages : en
Pages : 136
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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.
Author: Lucy Malenczuk
Publisher:
ISBN:
Category : Banks and banking
Languages : en
Pages : 4
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Author: Great Britain. Treasury
Publisher: The Stationery Office
ISBN: 9780101854528
Category : Business & Economics
Languages : en
Pages : 64
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Book Description
Banking reform is the second key pillar of the Government's programme for reform of the financial sector to address the weaknesses exposed by the financial crisis of 2007-09. The first pillar of this programme, reform of financial services regulation, has been legislated in the Financial Services Act that received Royal Assent in December 2012 (2012 Ch. 21, 9780105421122). The Government is now legislating to reform the structure of the UK banking system, through the Financial Services (Banking Reform) Bill (HCB 130, session 2012-13, ISBN 9780215053794) which implements key recommendations of the Independent Commission on Banking, including ring-fencing retail deposits from wholesale banking activities and depositor preference. This document accompanies introduction of the Bill and includes the Government response to the first report of the Parliamentary Commission on Banking Standards (PCBS), which conducted pre-legislative scrutiny on the draft Bill. The response explains where the Government has amended the Bill and includes and impact assessment for the Bill, along with the opinion of the independent Regulatory Policy Committee
