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Bank reforms 'insubstantial'

The Chancellor's attempts to reform" Britain's banking system still do not go far enough, according to the panel of MPs and peers set up following the industry's rate-fixing scandal.

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Banking commission: Government's reforms 'insubstantial'

Andrew Tyrie, chairman of the Independent Commission on Banking, called for further reserve power to break up banks if they do not adhere to rules to separate investment and high street operations.

He said:

The Bill is certainly much improved. However, the Government rejected a number of important recommendations.

The Commission has examined these again, alongside the Government's explanations for rejecting them.

We have concluded that the Government's arguments are insubstantial. There remains much more work to be done to improve the Bill.

– Andrew Tyrie

He added that the Government had also failed to address the panel's recommendation for a periodic, independent review of whether the ring-fence is doing its job. Bank of England governor Sir Mervyn King is among those in favour of this.

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