UK: banking reform - Treasury Committee report published

The House of Commons Treasury Committee has today published its Banking Reform Report (HC 1008) - available here (PDF) and here (HTML). The report makes many recommendations, against the background of the Government's proposals, with regard to depositor protection, the proposed Financial Stability Committee of the Bank of England and the operation of the Financial Services Authority with regard to failing financial institutions. A summary is available here.  

With regard to the functioning of the Tripartite Authorities (the Bank of England, HM Treasury and the FSA) the report notes:

New legislation must not be seen as a panacea for the failings within the Tripartite arrangements. Practical steps must be taken in parallel with the creation of the new legislative framework. In particular—

• The FSA must continue to strengthen its capacity to regulate to reduce the need for the use of the Special Resolution Regime;
  
• The Tripartite authorities must develop an effective external communications strategy to help to secure public and market confidence in the exercise of their new powers; and
  
• Depositor protection arrangements must be developed which will function smoothly and effectively in the event of a bank failure, including in the event of the failure of a European Economic Area (EEA) bank with a branch or branches in the United Kingdom".
  

Elsewhere there has been criticism of the Government's proposals: see here and here.