Are Miliband's banking proposals anything new?

Andrew Lilico writes in City AM

IEA Economics Fellow Dr Andrew Lilico wrote about Ed Miliband's proposals to create two new challenger banks in order to promote greater competition in the banking sector.

In the article he argued that a break up of current nationalised banks would lead to a reduced price of sale, resulting in a loss to the taxpayer. Secondly, he argued that these banks have an incentive to become 'too big to fail' and therefore protected by government, so restrictions on mergers and aquisitions do help competitive pressure in the banking sector. Yet he notes that many of the regulations proposed already exists, so what exactly is new about the proposed policy is yet to be seen.

You can read the full article here.

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