Afternoon summary
Time to recap
The government’s plan to unpick the ring-fencing rules protecting retail banking operations from an investment banking blow-up has concerned some experts.
Dr Angela Gallo, senior lecturer in finance at Bayes Business School, urges caution around any plans to de-regulate this part of the financial services industry, saying:
“Together with the removal of the bank bonuses and the discussion on call-in power, this political decision seems to have little to do with fixing the financial system or ensuring financial stability
“These were the main arguments behind many of these reforms in the aftermath of the financial crisis, but this seems to have more to do with a wish to deregulate.
“Increasingly, the initiatives of the government seem to ultimately target the role of central banks and regulators. While ring-fencing was a costly measure, the system has already adapted to it.
“De-regulation, unless carried out with a clear objective, can be dangerous.”
