Banking Reform

Stephen Williams Excerpts

Monday 4th February 2013 Commons Chamber

[Greg Clark]

I confess that I did not quite understand whether the hon. Gentleman’s point was that he objects to the power to separate any particular bank or the general point, but we can talk about it afterwards. It is important that the regulator—the Bank of England—should have the ability to address a bank that breaches the rules and that does not respect the integrity of the ring fence with consequences, those consequences being full separation.

[Stephen Williams (Bristol West) (LD)]

Does my right hon. Friend agree that consumers and businesses want the existing banking sector to receive the hot blast of competition and that, in order for that competition and choice to exist, we need a regulatory regime that will allow in new entrants, especially those that specialise in community-based banking and in lending to small businesses and social enterprises? Might not one such new entrant emerge from the break-up of the state-controlled RBS?

[Greg Clark]

My hon. Friend and I completely agree about the need for more competition in the banking sector. It is one of the features of the banking crisis that it has resulted in a concentration in the number of banks. Frankly, there were never enough in the first place, and we need urgently to see more new entrant banks of all types coming in. We are working with the existing regulatory authorities and, through amendments to the Bill, we will transform the state of competition in the banking sector. I very much hope to see an infusion of new energy and talent into the banking system in this country.