Chancellor George Osborne is expected to back plans to shake up the banking industry despite warnings that the move could harm the economy.
The Independent Commission on Banking (ICB) has proposed lenders should be forced to split their retail and investment banking arms to help prevent future bailouts.
The reforms could cost the sector up to £7bn, prompting fears they will slow lending at a time when the economy is in danger of sliding into recession.
The move will also heighten speculation that some banks will move their head offices away from London, depriving the UK of jobs and tax revenues.
But the proposals are expected to be supported by Mr Osborne in Parliament today.
The news saw shares in Britain's leading banks fall in early morning trade on Monday.
HSBC was down by 1% and Lloyds dropped 1.8%, while Barclays and the part-nationalised lenders Royal Bank of Scotland both fell 1.9%.
Read more - Sky News
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