- Face of banking has fundamentally changed
- Banks need to wake up on living wills
Commenting on the Treasury’s endorsement of the Independent Commission on Banking (ICB) proposals, Jon Pain, UK head of financial services risk consulting at KPMG, said:
“The green light has been given for the main proposals of the ICB to be implemented.
“Treasury’s endorsement has closely followed the Commission’s recommendations with eased-off bail-in debt proposals seeming to be the only major reprieve banks have won.
“The face and structure of banking has changed for good and we’ve reached a point of no return. This will be remembered as a defining moment for banks in the UK and work will intensify as business models need to be fundamentally overhauled.
“Banks should not be fooled by the ICB timetable as major banks will need to make some serious decisions before June to submit their recovery and resolution plans (RRPs) to the relevant authorities, which could have major implications for their ICB thinking.
“UK global systemically important banks have six months to get their RRPs in order, or risk facing an additional capital resolution buffer both inside and outside the ring-fence.”
- Ends-
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
Email: monica.fiumara@kpmg.co.uk
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.
