Parliamentary Commission on Banking Standards chair Andrew Tyrie says his inquiry will continue its work past its 18 December deadline to report back to the chancellor and into 2013.
Chancellor George Osborne gave the commission the December deadline so any proposals can feed into the banking reform bill set to be presented to parliament in the new year. A draft version was published last week.
The commission will still report back to the chancellor on the deadline but continue to take evidence next year.
Speaking to the British Bankers’ Association annual conference in London today, Tyrie said the commission will not be able to solve all banking problems in such a short space of time.
He said: “The important thing is to get it right which is why we are addressing the structural issue of banking as our priority between now and Christmas along with some issues. In the new year we will complete the work on banking standards.
“There are two bills going through parliament and we will want to make sure the chancellor has a legislative peg for any recommendations we make in the new year. Legislation is needed but it is only a small part of the tools needed to get it right.”
Tyrie said the commission will be considering whether banking reforms should be going further in light of recent scandals.
He said: “The legislation has clear objectives to ensure financial stability and stop banks from being too big to fail by looking at structural solutions. We will be looking not only at the clauses in pre-legislative scrutiny but also whether they successfully give effect to the Government’s stated objectives and in particular whether the proposals merit amendment in light of events since Sir John Vickers’ commission reported.
“Yesterday the Commission issued a call for detailed responses and we want to hear from anyone who may be affected.”