UK government accepts banking reforms

20 December 2011

The British government will publish details on how it intends to go about reforming the country's banking sector in the early stages of next year, it has emerged.

Yesterday (19 December), chancellor George Osborne issued the administration's formal response to the proposals put forward in the Independent Commission on Banking's (ICB) report released in September.

Within this document, it was stated that major financiers should have to fence off their retail banking arms from their investment divisions in order to avoid a repeat of the situation where taxpayers' money was needed to bail them out.

And Mr Osborne - who is also MP for Tatton - has pledged these proposals will be fully implemented by 2019, with further information to be provided in a White Paper next spring.

"The government is preparing the most far reaching reforms of British banking in our modern history - our objective is to make sure what happened in Britain never happens again," he noted.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development