ICB report is only the start for UK banking reform

ICB report is only the start for UK banking refor...

The government must strike a balance between financial stability and economy growth

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Press Release
Key points:
  • Government must move swiftly to clarify timetable to avoid uncertainty 

  • Need to weigh up cost of stability versus growth  

  • ICB proposals must not be viewed in isolation to other global regulatory initiatives 9 September 2011


Ahead of Monday’s final report from the Independent Commission on Banking (ICB), Giles Williams, Head of KPMG’s Regulatory Centre of Excellence in Europe, commented: “The long awaited ICB report will not bring an end to the uncertainty overhanging UK banks with the decision making process, particularly over ringfencing, only just beginning."   

“It is imperative that any ICB recommendations are considered in line with other regulatory initiatives. The ICB is only one piece of the global regulatory jigsaw facing banks and it is crucial all these pieces fit together. Equally the government must decide whether they’re prepared to press on with these reforms alone and allow other countries to follow or not."   

“Implementation of the proposed recommendations will inevitably come at a cost and the government must strike the right balance between financial stability and economic growth. The future profitability of banks will come under pressure as business models need to be restructured. If financial stability means a reduced risk profile for banks, it is clear that customer borrowing costs will go up and the flow of credit to the economy will be reduced.”

- ENDS -

Notes to editor

KPMG spokespeople are available to comment in the lead-up to the publication of the final report and from 8am on Monday 12th September.

For further information please contact:  

Monica Fiumara

Senior PR Manager, KPMG

T: 020 7694 5674

M: 07901 105180

E: monica.fiumara@kpmg.co.uk  

KPMG Press Office: +44 (0) 207 694 8773

About KPMG

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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