Martin Vander Weyer Martin Vander Weyer

Any Other Business | 29 January 2011

Interim findings from my Really Independent Commission on banking reform

issue 29 January 2011

Interim findings from my Really Independent Commission on banking reform

The Warden of All Souls, Sir John Vickers, has revealed the outlines of what he thinks about banking reform, so perhaps the Warden of Any Other Business — that’s me — should do likewise. Vickers, a former Bank of England economist, is chairman of the Independent Commission on Banking, which will publish interim findings in April and conclusions in September. Its objective is to recommend ways to stabilise the banking system and make it more competitive, while reassuring savers that their money is safe without implicit or explicit government guarantee.

In a speech last weekend, Vickers indicated that he hasn’t ruled out ‘narrow banking’ — the severing of investment banking from the retail branch networks where our savings reside. But close textual analysis suggests he may be keener on ‘ringfencing’: allowing these two forms of business to coexist within the same group, but insisting that the retail side has sufficient capital of its own to protect it from the storms and follies of the investment-bank trading floor.

Comments

Join the debate for just $5 for 3 months

Be part of the conversation with other Spectator readers by getting your first three months for $5.

Already a subscriber? Log in