Call for bank reform plan

Britain’s banks should ring-fence their high street and investment divisions as part of a far-reaching reform package which should be put in place by 2019, a government-appointed commission said today.

The protective firewall would be designed to “make it easier and less costly to resolve banks that get into trouble” and without taxpayers’ help, the Independent Commission on Banking said.

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The ICB also said in its 363-page report that the Government should ensure Lloyds Banking Group’s planned sale of 632 branches leads to the emergence of a “strong challenger bank” – but fell short of recommending that more branches should be sold.