Well over half of people think George Osborne should delay the Independent Commission on Banking recommendation that banks should ringfence their retail arms from their investment operations, according to our poll of influential City figures.
Of the 412 polled, 57 per cent said he should delay ringfencing in the face of the European debt crisis, rising to 69 per cent amongst bankers. More than a third think the ringfence would be damaging to the UK’s economic recovery, rising to 62 per cent of bankers. However, half of those surveyed think the policy would help prevent a second financial collapse.
Fewer bankers believe ringfencing would be beneficial than they did five months ago. Half are now behind the policy, compared to two thirds in April. In the latest poll, 38 per cent think the government taking no action to reform the banking sector is the best course of action, compared to a quarter last time. Those backing a complete separation of retail and investment banking has also dropped from 26 per cent to 21 per cent.
The results from respondents working across all fields showed support for ringfencing falling from 68 per cent to 66 per cent. However, 71 per cent said the government taking no action would be a bad idea.