This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/10296669.stm
The article has changed 9 times. There is an RSS feed of changes available.
Version 5 | Version 6 |
---|---|
Commission calls for bank reform | Commission calls for bank reform |
(1 day later) | |
"We have made recommendations to minimise the conflicts of interest inherent in banking, and to limit the liability of the taxpayer and thereby reduce the risk to the economy," Mr Davis said. | "We have made recommendations to minimise the conflicts of interest inherent in banking, and to limit the liability of the taxpayer and thereby reduce the risk to the economy," Mr Davis said. |
"We also propose a structure and regulatory regime designed to entrench a stable and competitive banking sector for the long term." | "We also propose a structure and regulatory regime designed to entrench a stable and competitive banking sector for the long term." |
Other recommendations by the commission include so-called "living wills" detailing how the collapse of a bank would be managed and how customers would be treated, as well as giving banks' boards responsibility for the management and stability of their banks. | Other recommendations by the commission include so-called "living wills" detailing how the collapse of a bank would be managed and how customers would be treated, as well as giving banks' boards responsibility for the management and stability of their banks. |
More competition | More competition |
It says regulation should be used instead to increase competition among banks. | It says regulation should be used instead to increase competition among banks. |
Improvements to depositor protection are also on the list, including a new class of "safe haven" accounts, which would only be invested in safe assets. | Improvements to depositor protection are also on the list, including a new class of "safe haven" accounts, which would only be invested in safe assets. |
In return for guaranteed protection, investors would receive low returns. Under the current Financial Services Compensation Scheme, only the first £50,000 protected. | In return for guaranteed protection, investors would receive low returns. Under the current Financial Services Compensation Scheme, only the first £50,000 protected. |
The commission wants this limit to apply to each brand rather than to each licensed institution, which would give savers greater protection. | The commission wants this limit to apply to each brand rather than to each licensed institution, which would give savers greater protection. |
Jenny Driscoll, from Which?, said it was time for banks to change. | Jenny Driscoll, from Which?, said it was time for banks to change. |
"I think if we've ever got the opportunity to sort out the banking system, it's now. And what Which? is doing is taking it forward, so that customers really do see the benefits following this," she said. | "I think if we've ever got the opportunity to sort out the banking system, it's now. And what Which? is doing is taking it forward, so that customers really do see the benefits following this," she said. |
"We want to hear from them, we want to hear banking nightmare stories, and we're really going to put the pressure on the banks to change, and also on the government to sort things out once and for all." | "We want to hear from them, we want to hear banking nightmare stories, and we're really going to put the pressure on the banks to change, and also on the government to sort things out once and for all." |
'Promising start' | 'Promising start' |
The Department for Work and Pensions said "simplification" was an "important part of the government's agenda". | The Department for Work and Pensions said "simplification" was an "important part of the government's agenda". |
"The government is committed to reinvigorating private pensions and welcomes contributions to the debate, including on the issue of encouraging savings," it said. | "The government is committed to reinvigorating private pensions and welcomes contributions to the debate, including on the issue of encouraging savings," it said. |
The British Bankers' Association said it agreed with many of the report's objectives, but added that its members were already making changes to tackle underlying problems. | The British Bankers' Association said it agreed with many of the report's objectives, but added that its members were already making changes to tackle underlying problems. |
In a statement, it added that the industry had made many significant changes to the way it operated and could not "by any means be described as a return to 'business as usual'", as the report implied. | In a statement, it added that the industry had made many significant changes to the way it operated and could not "by any means be described as a return to 'business as usual'", as the report implied. |
The commission was set up after a proposal by John McFall MP who, as chairman of the Treasury Select Committee, wanted to give the public a chance to air its views about the future of banking. | The commission was set up after a proposal by John McFall MP who, as chairman of the Treasury Select Committee, wanted to give the public a chance to air its views about the future of banking. |
However, the independent think-tank NEF, the New Economics Foundation, said the recommendations were not far-reaching enough. | |
Tony Greenham, head of the Business and Finance programme at the think-tank, said: "These recommendations are a promising start in building a banking system fit for the needs of the economy and society. | Tony Greenham, head of the Business and Finance programme at the think-tank, said: "These recommendations are a promising start in building a banking system fit for the needs of the economy and society. |
"We must hope that Vince Cable heeds his own advice now he is in government and not that of the vested interests in the banking industry seeking to prevent the break-up of their 'too-big-to-fail' mega-banks." | "We must hope that Vince Cable heeds his own advice now he is in government and not that of the vested interests in the banking industry seeking to prevent the break-up of their 'too-big-to-fail' mega-banks." |