Dated: 24 September 2010
Commenting on the Independent Banking Commission’s inquiry, Graeme Leach, Chief Economist at the Institute of Directors said:
“We strongly support the Banking Commission’s determination to ask hard questions and consider radical reform. Competition and competitiveness should be central to the Commission’s deliberations. First, any reforms need to ensure that competition trumps regulation. Second, reforms need to consider the impact on the competitiveness of the City.
“There are a number of radical reform options, such as limited purpose banking, which have an intellectual appeal but may not be feasible to introduce unilaterally. The Commission will need to dig well below the surface in order to unearth the fact and fiction around any unilateral response by the UK.”