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CBI RESPONDS TO BANKING COMMISSION INTERIM REPORT
John Cridland, CBI Director-General, said:
“It’s important that the Independent Commission on Banking favours reforming UK retail banking rather than breaking up universal banks.
“Stability in the banking sector is best achieved by establishing necessary capital buffers, having effective recovery and resolution arrangements, and appropriate supervision.
“Requiring banks to hold 10% capital buffers against their UK retail operations will provide an additional shock absorber in the event of a financial crisis, though we agree with the Commission that this would be best done through international reforms.
“But the Commission’s proposals on ring-fencing could have a significant impact on the UK financial landscape, and will need to be carefully assessed to ensure that they allow banks to support businesses and growth, and strengthen this country’s position as a leading global financial centre.
“Businesses agree that increasing competition and choice in banking is important, and the Commission has rightly highlighted switching between banks and increasing new entrants to the market as priorities.”
Notes to Editors: