GOVERNMENT-COMMISSIONED plans to force banks to “ring-fence” their retail and investment arms have been blasted for putting the economy at risk.
Standard Chartered, the emerging-markets focused bank, said the central plank of the Independent Commission on Banking (ICB) review “would not address the causes of the crisis or improve financial stability”.
“These proposals, coupled with the UK’s other unilateral moves, could well jeopardise London’s pre-eminence as a global financial centre,” the bank added.
Earlier this year, the commission called for banks to ring-fence their retail and investment arms by holding separate capital reserves for each in order to improve financial stability.
Standard Chartered, which is likely not to be impacted by the measures, said the measures were also likely to stifle economic growth in Britain.
The bank warned changes recommended by the ICB could negatively impact the cost and availability of bank lending for UK businesses, hitting growth and job creation.