WIREDGOV

On the 12 October the Government published draft legislation to implement key elements of the Independent Commission on Banking’s recommendations.

This marks the latest milestone in the Government’s reforms of the banking system.

The draft Banking Reform Bill, which will now be scrutinised by the Parliamentary Commission on Banking Standards, chaired by Andrew Tyrie MP, prior to its formal introduction into Parliament, delivers on the Government’s timetable for implementation of the ICB’s recommendations, as set out in the June White Paper.

The Government remains on track to have all legislation in place by the end of this Parliament. Banks will be required to comply with all aspects of the ICB’s recommendations from 2019.

The Financial Secretary to the Treasury, Greg Clark said:

“The publication of the draft Banking Reform Bill today illustrates Government’s ongoing commitment to reforming the banking sector.

“We want to ensure that taxpayers are protected whilst retaining our status as a global financial centre. The Government remains on course to have all ICB legislation in place by the end of this Parliament.

"The Government looks forward to receiving the report of the Parliamentary Commission on Banking Standards and will consider it carefully ahead of formally introducing the Bill to Parliament in early 2013.”

Notes for Editors

1. Download the draft Banking Reform Bill.

2. The Parliamentary Commission on Banking Standard, chaired by Andrew Tyrie, will scrutinise the draft legislation over the coming months and publish a report of the draft Bill by 18 December 2012.

3. On 14 June 2012 the Government published its White Paper ‘Banking reform: delivering stability and supporting a sustainable economy’, which set out the Government’s detailed proposals for implementing the recommendations of the Independent Commission on Banking (ICB), to fundamentally reform the structure of banking in the UK.  The consultation closed on 6 September 2012. Download the White Paper 'Banking reform: delivering stability and supporting a sustainable economy’.

4. On 16 June 2010, the Chancellor of the Exchequer and the Secretary of State for Business announced the creation of the ICB, to be chaired by Sir John Vickers. The Commission was asked to consider structural and related non-structural reforms to the UK banking sector to promote financial stability and competition, and to make recommendations to the Government by the end of September 2011.

5. The ICB published its report on 12 September 2011, which can be found on the ICB website, and the Government published its discussion paper which welcomed views before the formal White Paper consultation - in December 2011.