Banking Reform

Richard Fuller Excerpts

Thursday 14th June 2012 Commons Chamber

[Mr Hoban]

The process we are going to go through is a very transparent one. We have published a White Paper today, setting out clearly our response—our detailed response—to John Vickers’ recommendations. As I said earlier, we are going to publish a draft Bill, which will be subjected to pre-legislative scrutiny. We are being very transparent about how we are implementing Sir John Vickers’ recommendations. I hope that the hon. Gentleman will work with us and ensure that the recommendations get through, so that we remedy the mistakes of the past.

[Richard Fuller (Bedford) (Con)]

I welcome the Minister’s proposals for the long-term protection of depositors, but he will be aware that many of us are concerned about the supply of credit to businesses in our economy right now and the impact right now of these long-term proposals. What analysis has the Treasury made of the impact on credit from these proposals in the near term? May I suggest that the Minister continues to monitor the impact with more urgency so that the concerns that have been raised can be assuaged?

[Mr Hoban]

Strong banks that are in a position to lend to businesses are absolutely vital to the long-term future of our economy. We have seen that the mistakes of the past eventually catch up with people. They have led to a weakening of bank balance sheets, which are now being strengthened. We need not only strong banks, but schemes in place to sustain bank lending and to ensure a supply of credit to SMEs.