The Independent Commission on Banking: The Vickers Report & the Parliamentary Commission on banking standards - Commons Library Standard Note

Published 30 December 2013 | Standard notes SN06171

Amended 02 January 2014

Authors: Tim Edmonds

Topic: Financial institutions, Financial services

The Vickers Commission proposed a fundamental change in the way that banks in the UK are organised. The main change is that a 'ring fence' would separate retail 'utility ' banking work from a range of investment banking and corporate finance activities. It also proposes that banks retain higher capital and loss absorbing reserves than is currently proposed under the Basel rules. The Government has accepted the Commission's main proposals. Many of the recommendations of Vickers and of the Parliamentary Commission on banking standards (also discussed here) were given effect by provisions in the Financial Services (Banking Reform) Act 2013.

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