Independent Banking Commission Report

Claire Perry Excerpts

Monday 12th September 2011 Commons Chamber

[Mr]

Osborne: The 10% capital requirement against risk-weighted assets is based on the same definition as, and goes a bit beyond, the Basel rules, which recommend 7%. At present, however, the Financial Stability Board is developing proposals to add 2.5% for large, systemically important banks such as RBS and Barclays. The difference will be between 9.5% and 10%, which is quite close, for the retail ring-fenced side. On the investment side, as I have said, the commission does not recommend going beyond the international rules in order to keep London competitive.

[Claire Perry (Devizes) (Con)]

On that point, let me say that I welcome the careful timetable that has been set out. That is particularly important when the Government are prepared to act unilaterally, which the last Government were not prepared to do.

May I urge the Chancellor, when faced with the inevitable whingeing from banks saying that they are considering leaving the United Kingdom, to bear it in mind that the UK retail business is unbelievably profitable, and to say that banks that want to leave should exit their business or be invited to do so?