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Banking proposals deemed “not tough enough”

Banking proposals deemed “not tough enough”

Category: Banking

Updated: 21/12/2012
First Published: 21/12/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

MPs have blasted proposals to reform the banking industry, claiming they fall short of expectations.

The review of the banking sector, set up in light of the financial crisis which saw a number of banks being bailed out by the UK taxpayer, has been welcomed by the Parliamentary Commission on Banking.

Members of the commission are concerned, however, that more must be done regarding the protection, or "ring-fencing", of customer deposits in the event of a bank collapsing and refusing to comply with the new rules.

The commission is expected to tell the Chancellor George Osborne to hand power to the Bank of England to break up banks that fail to comply with regulation.

Chairman of the commission, Andrew Tyrie, claimed that such power would provide an "electrical fence" around savers' deposits.

What next?

Find out where your bank or building society is licenced, and what deposit protection guarantees you'll get if they go bust (includes UK Crown dependencies).


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