The Independent Commission on Banking: interim findings and comment

Abstract

The Interim Report of the Independent Commission on Banking was an eagerly anticipated piece of work that could have significant longer-term impacts on the nature and structure of banking markets in the UK for many years. The Commission has examined the need for reform in the UK banking sector following the recent financial crisis and outlines the most desirable options for reform in terms of financial stability and competition. The Report is substantial, well researched, informative and insightful and contains a number of highly useful recommendations for reform. Many of the final recommendations are to be fully supported although some have attracted criticism for being too radical by some and for not being radical enough by others. This is a difficult and complex area, though one that it is absolutely critical to the longer-term recovery and success of the UK economy. Compromise positions are inevitable and the Report has made an important contribution in highlighting the key options available and suggesting one set of possible final solutions.