The UK's Independent Commission on Banking (ICB) report was
released on September 12 to much interest in the industry.
The Commission, led by Sir John Vickers, was asked by the
chancellor of the exchequer to consider structural and related
non-structural reforms to the UK banking sector to promote
financial stability and competition.
The interim report, known as the Vickers report, was
released in April and made headlines by recommending the
ring-fencing of UK institutions' investment and retail banking
The ring-fencing plan is clarified in the final plan and
again attracted the most attention from the media. The ICB
argues that all retail banking business should be conducted by
a separate subsidiary, with independent governance and its own
padding of extra capital. Capital could be moved from the
ringfenced bank to the investment bank if the capital ratio of
the ringfenced bank did not fall below the 10% minimum.