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Reform of banking welcome but more must be done to get banks lending, says TUC

Responding to a white paper published by the government yesterday (Thursday) setting out proposals to fundamentally reform the structure of banking in the UK, TUC General Secretary Brendan Barber said:

'Today the government has provided welcome recognition of the need to make UK banking far safer, and to ringfence retail banking operations from riskier investment banks.

'However it is disappointing that the minimum capital requirements proposed by Vickers have been watered down, reducing the impact that these reforms will have.

'It's concerning that banks have been given nearly a decade to implement these important changes - which will underpin the sustainability of our economic recovery - particularly given the speed with which much of the government's wider policy reforms are being rushed through.

'There is also far more that needs to be done to get banks lending to the wider economy - including immediate borrowing powers for the new Green Investment Bank and tougher government lending requirements on nationalised banks.'

NOTES TO EDITORS:

- The white paper is available at www.hm-treasury.gov.uk/fin_stability_regreform_icb.htm

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

- Congress 2012 will be held at the Brighton Centre from Sunday 9 September to Wednesday 12 September. Free media passes can be obtained by visiting www.tuc.org.uk/mediacredentials and completing an online form. Applications must be in by noon on Wednesday 29 August. Any received later than that will be processed in Brighton and will cost £50. Please note that the Brighton Centre requires 60 days' notice for telephone line facilities. Details available on the link above.

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E:
media@tuc.org.uk
Elly Gibson T: 020 7467 1337 M: 07900 910624 E:
egibson@tuc.org.uk