Banking Commission should consider radical reform options, says IoD

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.”

ENDS

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Edwin Morgan
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Email: edwin.morgan@iod.com
Website: www.iod.com/policy

Notes to editors

  • The Institute of Directors (IoD) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with approximately 38,000 members in the United Kingdom and overseas. Membership includes directors from right across the business spectrum – from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.
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