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Banking White Paper to give savers more protection
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Banking White Paper to give savers more protection
Savers will be given greater protection if a bank fails, under government proposals due to be announced later. Chancellor George Osborne will unveil a White Paper on banking reform, which follows the recommendations made by the Independent Commission on Banking. The ICB was set up to look at ways to make the UK banking system safer. One of its main proposals is to ring-fence High Street retail banking operations from riskier operations such as investment banking. However, Mr Osborne is believed to be considering making an important concession to banks, who were angered at the ring-fencing proposals. The British Bankers' Association has warned that the reforms could hurt the banking sector, and have a knock-on effect on the overall economy. Mr Osborne is looking at broadening the range of activities allowed within ring-fenced operations to include certain hedging tools, for instance to protect against interest rate and currency fluctuations, where these are sold alongside loans to small business clients.....Read more here: BBC News - Banking White Paper to give savers more protectionTags: None
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