Jeremy Lefroy
Main Page: Jeremy Lefroy (Conservative - Stafford)Department Debates - View all Jeremy Lefroy's debates with the HM Treasury
(12 years, 11 months ago)
Commons ChamberThe hon. Gentleman says we’re all doomed, but the idea of these reforms is to ensure that we are not doomed in the future.
Following on from the Chancellor’s answer to the hon. Member for Middlesbrough (Sir Stuart Bell), the figures in the Vickers report indicate that there will need to be between £200 billion and £400 billion of equity capital and other funds at risk within the ring fence. What impact will that have on the provision of capital and credit to business?
John Vickers explicitly examines the argument that this will somehow undermine credit and comes to the conclusion that it will not. He says that, first, because the broader benefits of a stable banking system to the banks themselves and to the economy outweigh the costs and, secondly, because retail banks will, as I say, be more encouraged to use their retail deposits to support retail lending.