Sistema financiero
Enviado por elbarrio • 12 de Abril de 2013 • Apuntes • 214 Palabras (1 Páginas) • 326 Visitas
As consequence of the current global crisis, the UK government want to do reform to mitigate, to the extent possible, its effects and to create a secure financial system. This has enlisted the help of Sir John Vickers who has created a commission (ICB) which has made a final report.
The ICB final report tackles, four main points:
- The ring-fence: banks must separate deposits from individuals and SMEs as well as their overdraft on the one hand and investment on the other hand. In the retail ring-fence is not possible to do certain activities considered risky in order that if risks are made will not affect the regular flow of funding.
- Capital requirements: In the ring-fenced business, Banks have to hold equity capital of at least 10% of RWA. Both parts have to hold a total loss absorbing capital of at least 17-20%.
- Competition: It suggests a package intended to improve this issue, more transparency in decision-making positions and the sale of Lloyd’s branches.
- Cost: The report recognizes that will be expensive but it will be better in the future because the social benefit will be greater.
The government has approved in its White Paper proposals most of the ICB. This essay will explain the main differences between the White Paper and the ICB final report.
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