Josh Ryan-Collins, one of the co-authors of our submission to the Independent Commission on Banking, has written on the NEF blog about the need for the ICB to ‘get the basics of banking right’. He writes:
“You won’t find too many who will disagree with the regulatory rule of thumb that ‘if it isn’t going to hurt, its probably not going to work’. Lets hope the the Independent Commission on Banking is one of the exceptions since shares in the big banks rose between 1% and 3% upon the release of the ICBs interim findings recommendations yesterday.
“We’ll get in to the detail of why the banks will be secretly pleased at the outcome of the report in later blogs but I’m going to use this opportunity to raise a more fundamental issue. That is that the ICB still doesn’t appear to understand how modern banks actually operate.”
I highly recommend the full article, which you can read here.