We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedGovernance

UK bank ring-fencing is the best option, Vickers says

Chairman of the Independent Commission on banking sets out his stall to MPs

Article comments

A break-up of retail and investment operations of UK banks should on the table only if ring-fencing of the former did not bring about a change in culture across the sector, according to Sir John Vickers, chairman of the Independent Commission on Banking.

The Commission was set-up by the Coalition government to review the bank sector following the financial crisis. It recommended that a UK bank's retail business should be ring-fenced from its investment banking arm by 2019.

Appearing before the Parliamentary Commission on Banking Standards, Sir John said that he had not hardened his view, by recommending a total separation of retail and investment banks rather than ring-fencing of banks, in wake of the Libor rate scandal and other controversies.

"Standards have been lower than would have been expected. But I do not see these events as shifting the balance of the argument against what we proposed, towards total separation. With the legal and other safeguards it will work, including on the cultural aspect," he told MPs.

He added that the plan – currently being mulled by the government – would require "firm and effective" regulation. Sir John also said it was important that the proposals received cross-party support.

"If the industry turned out to be unreformable...then it's possible that total separation would turn out in due course to be the better step to take," he concluded.


Recommended Articles


UK bank ring-fencing is the best option, Vickers says

What’s going to kill your company?

What’s going to kill your company?

The role of the CFO and the board in strategic risk governancemore ..

Tesco’s new finance chief starts two months early amid accounting crisis

Marks and Spencer releases Alan Stewart early by to help deal with £250 million hole in Tesco’s accountsmore ..

Microsoft removes Bing image widget after Getty lawsuit

The company is being sued by Getty Images for copyright infringementmore ..

Apple loses bid for sales ban in Samsung patent case

Apple failed to show that it suffered enough harm as a result of Samsung's infringementmore ..

What makes a good board report?

Examining how CFOs can improve the way they report back to the boardmore ..

Examining the issue of corporate litigation funding

Litigation funding is a very useful tool for CFOs but not a panacea for all legal mattersmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..


* *