- Clear that reform will happen but key details for banks remain to be determined
- Significant discretion handed to regulators about how reforms will be applied
- Uncertainty will continue until regulators finalise the resolution regime
Jon Pain, head of financial services risk consulting at KPMG, commented:
“Today’s White Paper sheds little further light on how the banking reforms will be applied. It has however made it very clear that the train has left the station and that these reforms, particularly with regard to ring-fencing, will be implemented.
“Regulators have been handed significant discretion and it will now be left to them to decide how the reforms will be implemented. Until then uncertainty for banks will remain.
“The paper is light on the issue of competition and whilst stressing the importance of striking the balance between stability and growth, is short on recommendations addressing the growth agenda.
“The costs, estimated at between £4-7bn per year, are significant and when added to the wider reform costs are going to further depress banks’ profitability.”
Notes to editor
For further information please contact
Monica Fiumara, Senior PR Manager, KPMG
Tel: +44 (0)20 7694 5674
Mobile: +44 (0)7901 105180
KPMG Press Office: 020 7694 8773
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.