The UK Government's response to the Independent Commission on Banking
In our client alert of September 2011 (please click here for your copy), we discussed the Final Report of the Independent Commission on Banking ("ICB")1. The ICB made recommendations to the UK Government for reforms to the UK banking sector in three main areas:
1) retail ring-fencing;
2) requirements for additional and more loss-absorbent capital; and
3) measures to enhance competition.
On 19 December 2011, the UK Government published its official response to the ICB2. This sets out the Government's position on the ICB's main recommendations and gives an indication of its legislative plans. This client alert provides an overview of the Government's response.