The Treasury select committee has called on the Independent Commission on Banking to publish the cost-benefit analysis it used to establish that a total seperation of retail and investment banking would be too costly.
Last month, the commission, which is chaired by Sir John Vickers, published its interim report on reforming the banking system.
It proposed a number of measures, including a requirement for banks to ringfence their UK retail banking activities.
During a TSC hearing this week, Vickers said while the commission has not ruled out a total separation of retail and investment banks, a cost-benefit analysis shows total separation could place “serious costs” on banks, with little extra benefit.
Vickers said the commission has not released the figures because it is concerned they are not robust enough.
Select committee chair Andrew Tyrie said: “People out there are saying we need full separation and they need to know what the costs of that are. We would like to see as much as possible of that in the public domain as soon as possible, and the numbers should, in as far as is possible, be agreed with the banking community.”
Vickers said the ringfencing proposal is “sensible” because it will deliver “almost all” the financial stability benefits without imposing extra costs on the industry.