BoE governor calls for full banking reforms

21 September 2012

Britain's banking system should undergo the full set of reforms outlined in the Vickers report as the sector attempts to recover in the wake of the global economic slump.

That is according to Mervyn King, governor of the Bank of England (BoE), who has noted that the recommendations put forward in this document should not be watered down by financiers.

Under the terms of the proposals put forward by the Independent Commission on Banking earlier this year, lenders will have to abide by a strict new set of rules moving forward, including the ring-fencing of their retail and investment arms.

Even though the government has indicated it will adopt these recommendations in full, banks are lobbying for the rules to be loosened.

However, during an interview with Channel 4 News last night, Mr King said his "personal preference" is for the changes to be implemented fully as they are "in the right direction".

By Tony Aynsley

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