Banks threatened with tougher rules

In an announcement ahead of a debate on the Banking Reform Bill today the Parliamentary Commission on Banking Standards has called for tougher rules on banks. Having been asked to find ways to reform the banks, the comission has called to allow financial regulators to determine to what extent banks can leverage capital for investment and lending.

The announcement also stated that if any British bank abuses new regulation then all banks should be split into retail and investment banking operations. Chancellor George Osborne said in January that he would adopt recommendations to split the retail and investment arms of any bank that did not comply with the new rules.