Vickers Report: Difference between revisions
imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Update.) |
||
| Line 1: | Line 1: | ||
The report of the UK's Independent Commission on Banking, named after the Commission's chairman Sir John Vickers. | The report of the UK's Independent Commission on Banking, named after the Commission's chairman Sir John Vickers. | ||
The report's main recommendations | The report's main recommendations included the identification - and partial separation - of: | ||
(i) Retail banking (including retail deposit taking and small business lending); and <br> | (i) Retail banking (including retail deposit taking and small business lending); and <br> | ||
| Line 8: | Line 8: | ||
The partial separation proposed in the report would be implemented by a "ringfencing" structure within the large banks currently undertaking both types of activity. | The partial separation proposed in the report would be implemented by a "ringfencing" structure within the large banks currently undertaking both types of activity. | ||
Under the ringfencing proposals the capital and the stability of the retail banks would be protected from the claims of creditors of the banks' riskier trading activities. The intention of the proposals | Under the ringfencing proposals the capital and the stability of the retail banks would be protected from the claims of creditors of the banks' riskier trading activities. The intention of the proposals was that the retail banks should not require public (taxpayer) rescue again, following any future failures of banks' riskier trading activities. | ||
In simple terms the proposals - if effective - would prevent banks from speculating with retail deposits (and from jeopardising their future ability to make small and medium-sized business loans). | In simple terms the proposals - if effective - would prevent banks from speculating with retail deposits (and from jeopardising their future ability to make small and medium-sized business loans). | ||
The proposals of the Vickers Report | The proposals of the Vickers Report were more moderate than a full separation of ownership (as required - for example - under the former US Glass-Steagall Act). | ||
| Line 19: | Line 19: | ||
* [[Glass-Steagall Act]] | * [[Glass-Steagall Act]] | ||
* [[Independent Commission on Banking]] | * [[Independent Commission on Banking]] | ||
* [[Liikanen rule]] | |||
* [[Ring fence]] | * [[Ring fence]] | ||
* [[Volcker Rule]] | * [[Volcker Rule]] | ||
===Other links=== | ===Other links=== | ||
[http://www.parliament.uk/business/publications/research/briefing-papers/SN06171/the-independent-commission-on-banking-the-vickers-report-the-parliamentary-commission-on-banking-standards The Independent Commission on Banking: The Vickers Report & the Parliamentary Commission on banking standards - Commons Library Standard Note] | [http://www.parliament.uk/business/publications/research/briefing-papers/SN06171/the-independent-commission-on-banking-the-vickers-report-the-parliamentary-commission-on-banking-standards The Independent Commission on Banking: The Vickers Report & the Parliamentary Commission on banking standards - Commons Library Standard Note] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Revision as of 20:30, 6 October 2018
The report of the UK's Independent Commission on Banking, named after the Commission's chairman Sir John Vickers.
The report's main recommendations included the identification - and partial separation - of:
(i) Retail banking (including retail deposit taking and small business lending); and
(ii) Riskier trading activities in the capital markets (sometimes also known as investment banking).
The partial separation proposed in the report would be implemented by a "ringfencing" structure within the large banks currently undertaking both types of activity.
Under the ringfencing proposals the capital and the stability of the retail banks would be protected from the claims of creditors of the banks' riskier trading activities. The intention of the proposals was that the retail banks should not require public (taxpayer) rescue again, following any future failures of banks' riskier trading activities.
In simple terms the proposals - if effective - would prevent banks from speculating with retail deposits (and from jeopardising their future ability to make small and medium-sized business loans).
The proposals of the Vickers Report were more moderate than a full separation of ownership (as required - for example - under the former US Glass-Steagall Act).
