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News release


19 December 2011

City of London response to Chancellor's statement on ICB report

Stuart Fraser, Policy Chairman at the City of London Corporation, said:

“The promotion of both greater stability and increased competition in UK banking are desirable but how the industry gets there is the real question. The analysis undertaken by the Independent Commission on Banking will play a crucial role in shaping the way forward for regulatory reform in the UK. The City looks forward to working closely with government to deliver a safe, secure and sustainable banking system that is internationally competitive.

“It is vital that we reconcile political imperatives with what is practical for banks to minimise transitional risks. We must be very careful that at a time when bank capital is under extreme pressure from a host of areas, including the prospect of sovereign default in the Eurozone and the current debate on “bail-ins”, that we carefully assess the impact of these measures – particularly banks’ ability to lend to consumers. In this light, the final deadline of 2019 for full implementation is a sensible timetable.

“Much progress on reform has been made at a global level, through institutions such as the Basel Committee on Banking Supervision and G20, and the UK has a leading role to play in this process. Given the international nature of the financial marketplace, this is exactly the approach we should be taking if we are not to act out of step with rival centres and damage the UK’s standing as a world leading financial hub. The industry has a vital role to play in supporting business growth, creating jobs and putting the economy on a sustainable path.”

Sanjay Odedra
Senior Media Officer
City of London Corporation
Tel 020 7332 1835 / 07831 542 856
www.cityoflondon.gov.uk
http://www.twitter.com/cityoflondon


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