- 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.”
Notes to editor:
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