Transformation proposed for the banking sector

Britain’s banks are set for one of the biggest transformations in years.

George Osborne has described a year-long review of the banking sector as a “decisive moment” and will be pushing for new changes since the recession began in 2008. The new reforms will not begin until 2019.

The chancellor assured that “a new banking system that works for Britain” would be created, after tax payers had saved multiple banks through the financial crisis.

The Independent Commission on Banking, chaired by Sir John Vickers have put together a 358 page report outlining what to do next, and have urged the coalition not to chop and change it.

The proposals aim to give greater protection to high street customers, and more money put to one side to shield banks from a future crisis happen.

The CBI’s Neil Bentley said: "The UK is going it alone on ring-fencing, so the government must rigorously examine how and when to implement these proposals, otherwise it risks damaging businesses and threatening growth."

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