Banking commission report set to overhaul UK banking

Money Marketing features comments from Philip Booth

Philip Booth was quoted in Money Marketing discussing the banking commission report due to be released on 17 June.

The parliamentary commission on banking is preparing to release its report on banking standards on 17 June calling for a major overhaul of the entire sector. The commission was established by George Osborne following the Libor scandal last year.

Discussing a potential increase of the leverage ratio, Philip Booth stated, "When you have a good mechanism for banks failing safely then it should not really be the business of regulators how much capital banks hold. Leverage ratios particularly worry me because the more complex regulation becomes the more it gets gamed. I think leverage ratios will be gamed because it is so easy for banks to achieve the effective leverage without actually having leverage."

Read the original article here.

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