Wednesday 9 June 2010
The Future of Banking Group Commission, set up by the consumer group Which?, has today published a report calling for ‘profound reform’ of the UK banking system
The commission, which is chaired by Tory MP David Davis and counts Vince Cable in his capacity as Liberal Democrat Shadow Chancellor as a key contributor, recommends reform based on three main principles:
- Not too big to fail – banks should construct ‘living wills’ to protect customers or the economy from catastrophic damage in the event of their failure
- Effective competition: a new approach to regulation – A new consumer protection led approach to regulation through effective competition. The Commission finds that lack of competition has led to a breakdown in market discipline which is allowing consumers to be treated badly
- A healthy culture: a new approach to regulation – Introducing a new culture whereby bankers and others in financial services explicitly accept the duties and responsibilities they owe and recognise their duty to act like trustworthy professionals
commission.bnbb.org/banking/sites/all/themes/whichfobtheme/pdf/commission_report.pdf