The new government have decided that there is to be a complete overhaul of the banking system. They are to establish an Independent commission to investigate this proposal. George Osborne is to chair this committee, with Vince Hill (business secretary) as a fellow member of the commission, not all members have been decided upon yet.
They are to introduce an extra tax on the industry and are to tackle the controversial practice of unacceptable bonuses. They have given a year as a timescale in determining whether separating retail and investment banking will separate the risk factor.
It is mentioned within the Conservative manifesto, that they want to investigate the question of competition within the industry. It is feared by analysts that any inquiries could cause uncertainty and delay the recovery of £65.5bn of taxpayers money invested in RBS and Lloyds Banking Group.
Many details are yet to be decided. It is still unclear whether the new bank tax will be the proposal of 10% of profits to raise £2 billion annually from the Lib Dems, or the Conservatives levy on liabilities, to raise £1 billion.
No comments:
Post a Comment