Banks Want Capital Rules Delay

Banks Want Capital Rules Delay.

Banks are lobbying hard to delay capital adequacy rules for banks which will result in their riskier investment activities being separated from their less risky traditional banking business.

Business Secretary Vince Cable has slammed banks reluctance, indeed the CBI director general suggested it was “barking made” and Cable appears to be sticking to his guns suggesting that banking reforms will go ahead despite a row over the speed of the changes.

Our view: A dangerous game they are all playing.  Banks need to make money.  The Government needs banks to make money as they meet around 20-30%% of the UK total tax bill.

The public want protecting but how many will pay for their banking? We suggest the only way to segment traditional banking from investment banking is to introduce bank charges for individuals and certainly we cannot see many wanting this given that “free” banking has been around for many years.