Parliamentary Commission on Banking Standards - Second Report
Banking reform: towards the right structure

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Here you can browse the report which was ordered by the House of Lords and the House of Commons to be printed 26 February 2013.

Contents

Terms of Reference

1 Introduction

2 Reinforcing the ring-fence

Introduction

Electrifying the ring-fence

The rationale for electrification

The first reserve power

The independent review mechanism

The second reserve power

Objectives in primary legislation

Delegated powers and scrutiny of secondary legislation

The approach of the draft Bill and the associated risks

Consideration of initial proposed secondary legislation in draft

Conditions on the exercise of certain delegated powers

Parliamentary scrutiny

3 Specific issues on ring-fence implementation

Ring-fenced banks acting as principal in the sale of derivatives

The de minimis requirement

Independence and governance of the ring-fenced bank

Relationship between the ring-fenced bank and the holding company

Liabilities

4 Capital and loss absorbency

Introduction

Bail-in

Primary Loss Absorbing Capital (PLAC)

The leverage ratio and risk-weightings

5 Wider reforms and our final Report

Conclusions and recommendations

Annex: Recommendations and responses

Formal Minutes

Appendix: Amendments

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Prepared 11 March 2013