Structural regulation and financial reform: the Independent Commission on Banking

The Independent Commission on Banking (ICB) has produced an intelligent and articulate final Report on the key issues and challenges that remain to be dealt with following the recent crises in financial markets. The work is substantial, informed and well sourced and documented. The Commission has brought forward a number of anticipated recommendations from its earlier Interim Report in April 2011 to resolve the continuing difficulties identified with regard to financial stability and competition in the UK. These include a new retail and Small and Medium-sized Enterprise (SME) structural ?ring-fence?, higher capital and loss absorption levels and tighter leverage ratios well as new account transferability, transparency and increased competition conditions. Much of this will be fully implemented in due course although a number of difficult policy choices remain with regard to balancing the perceived financial stability improvements referred to against the increased regulatory burdens and higher client costs imposed.