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Vickers claims the public won’t have to pay for banking shake-up

Consumers will not end up paying the brunt of the costs of banking sector reform, according to the Independent Commission on Banking.

Speaking at a press conference earlier this week, Chairman Sir John Vickers was asked whether the costs of implementing these reforms would ultimately be passed on to consumers.

He said the costs would affect the profitability of banks, the remuneration of bank staff and the costs levied on consumers.

But he added: “We believe that the effect on the final consumer in the scheme of things would be comparatively small.”

The report says the costs of ringfencing retail banking are likely to be much smaller than the £12bn-£15bn previously estimated.

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