The Independent Commission on Banking: The Vickers Report and Proposals for the Future of UK BankingSullivan & Cromwell LLP - September 30, 2011
On 12 September, the UK’s Independent Commission on Banking (“ICB”) published its Final Report and Recommendations (the “ICB Report”) on proposed reforms to improve stability and competition in the UK banking sector. The ICB sets out a number of potentially far-reaching proposals for the UK banking sector which are summarised below. The proposals have given rise to much comment, with much of the focus on the proposals for ring-fencing of the retail operations of UK banks. However, the proposals in the ICB Report are not limited to ring-fencing but also extend to a number of other important proposals on UK bank capital requirements, as well as proposals for new bail-in powers for the authorities and depositor preference up to a specified level.