nef's reaction to Vince Cable's announcement on banking reform

Responding to Vince Cable’s comments on the Andrew Marr Show that the Government would “accept in full” the proposals of Vickers Commission on Banking, Tony Greenham, head of Finance and Business at nef said:

“We welcome the government’s decision not to water down the Vickers Commission but the ICB’s recommendations do not go far or fast enough to stabilise the banking system.

“As Vince Cable himself acknowledged in July, the ring fence proposed by Vickers will not be as effective as a full separation of retail and investment banking. The flexible ring fence proposed by Vickers will give banks too much room for manoeuvre and could prove a regulatory nightmare to enforce.

“2019 is a long time to wait for these reforms and leaves the public exposed in the (increasingly likely) event of another financial crash –we might have to bail banks out again. It also gives banks years to lobby for laws to be watered down even further.”

“Vickers’ report is a step in the right direction, but more action is needed to deliver a safe and useful banking system.”