Parliamentary Commission on Banking Standards chair Andrew Tyrie has indicated his inquiry will push for tougher banking reforms than currently laid out.
A draft banking reform bill was published last week that confirmed the ring-fence of retail banking, proposed reform of the Financial Services Compensation Scheme and gave the Treasury new powers to hike industry fees to cover the costs of international regulation.
Speaking at the British Bankers’ Association annual conference in London last week, Tyrie said the commission will consider recent scandals when judging the current proposals.
Tyrie 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.”
Tyrie said the inquiry will run into next year as there is not enough time to consider everything by the 18 December deadline. It will focus on structural issues until Christmas before turning to standards in 2013.
The commission will still report back to the chancellor on the deadline but will continue to take evidence next year.