WIREDGOV

Responding to a white paper published by the government yesterday (Thursday) setting out proposals to fundamentally reform the structure of banking in the UK, TUC General Secretary Brendan Barber said:

'Today the government has provided welcome recognition of the need to make UK banking far safer, and to ringfence retail banking operations from riskier investment banks.

'However it is disappointing that the minimum capital requirements proposed by Vickers have been watered down, reducing the impact that these reforms will have.

'It's concerning that banks have been given nearly a decade to implement these important changes - which will underpin the sustainability of our economic recovery - particularly given the speed with which much of the government's wider policy reforms are being rushed through.

'There is also far more that needs to be done to get banks lending to the wider economy - including immediate borrowing powers for the new Green Investment Bank and tougher government lending requirements on nationalised banks.'

NOTES TO EDITORS:

- The white paper is available at www.hm-treasury.gov.uk/fin_stability_regreform_icb.htm

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