The House of Lords discussed the report of the Independent Commission on Banking on Thursday 15 September. Among the Members of the Lords with specialist experience and expertise contributing to the debate were a former Bank of England director and former Chancellor of the Exchequer.
Explaining why he had tabled the debate, Lord Myners said the debate ‘provides the first serious opportunity for Parliament to consider and debate the final report published this week by the Independent Commission on Banking.’
He said: ‘It is an issue of critical importance, because the failure of the banking system caused huge economic damage all across the world. This is the Lords’ opportunity to assess the report and decide if the Independent Commission has come up with a solution to create a more resilient banking system, whilst still ensuring that the banking sector continues to support economic recovery.’
The Commission, led by former Bank of England chief economist John Vickers, was asked to consider structural and related non-structural reforms to the UK banking sector to promote financial stability and competition. Its final report, published on 12 September, makes three main recommendations, including the implementation of a ‘retail ring-fence’ to isolate banking activities where continuous provision of service is vital to the economy and to a bank’s customers; along with recommendations on loss-absorbency and competition. The Commission has called for the changes to be implemented by the start of 2019.
Members of the Lords who contributed to the debate
Use the links to watch/listen to their contributions:
Lord Myners (Labour), opened the debate.
Members who took part included:
- Lord Lawson of Blaby (Conservative), former Chancellor of the Exchequer
- Lord Griffiths of Fforestfach (Conservative), former Director of the Bank of England
- Earl of Caithness (Conservative), former Paymaster General
- Lord McFall of Alcluith (Labour), former Chairman of the House of Commons Treasury Committee
- Lord Davies of Abersoch (Labour), former Minister for Trade, Investment and Small Business
- Lord Davies of Oldham (Labour), former Government spokesperson for the Treasury
- Lord Newby (Liberal Democrat), party spokesperson for the Treasury
- Baroness Kramer (Liberal Democrat), former vice-president of a US bank, and Lord Oakeshott of Seagrove Bay (Liberal Democrat), former party Treasury spokesperson
Other speakers included Lord Liddle (Labour) and Lord Wood of Anfield (Labour).
Lord de Mauley (Conservative) responded on behalf of the Government.
The House of Lords responded to the Government’s statement on the Independent Banking Commission on Monday 12 September.