Parliamentary banking standards commission to unveil a tough stance on bank ring-fencing

Michael Bow
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A HEAVYWEIGHT parliamentary committee on banking standards will this week unveil a hardline stance on proposals to ring-fence the retail banking operations of high street banks from their investment banking activities.

The commission on banking standards – comprised of big hitters including former chancellor Lord Lawson, the future Archbishop of Canterbury Reverend Justin Welby and Treasury committee chair Andrew Tyrie MP – is expected to raise the spectre of a law requiring banks to split their retail and investment banking operations. The committee is due to deliver its long-awaited report into the Banking Reform bill, which proposes a ring fence based on recommendations from Sir John Vickers, on Friday.

It is understood the commission could take a harder stance and recommend laying down a law to separate the activities of investment banks and retail banks to be drawn upon in future, if the ring fencing proposals fail to reduce risk.