Savers will have greater protection if a bank fails, under government plans.
Financial Secretary Mark Hoban unveiled the banking reform White Paper, which follows the recommendations made by the Independent Commission on Banking.
He confirmed retail banking operations would be ring-fenced from riskier operations such as investment banking.
But Sir John Vickers, chair of the ICB, said the government should have gone further, namely setting a higher capital ratio for banks to put aside.
The ICB, which was set up to look at ways to make the UK banking system safer, wanted to see a ratio of 4.06% of pure equity capital to gross loans and investments. This would mean a bank would have to suffer a 4% fall in the value of all its loans and investments to be wiped out.
But the government is sticking to the 3% ratio agreed internationally in the Basel III rules.
"The White Paper proposals are far-reaching, but on some points - such as limits on the leverage of big banks - we believe they should go further," Sir John said.
"We welcome that the ICB proposals have been accepted in large part, but urge the government to resist pressure to weaken their effectiveness."
'Wider range'Mr Hoban told the House of Commons: "The government will ring-fence retail deposits from the risks posed by international wholesale and investment banking. A ring-fenced bank will be economically and legally separate from the rest of the group and run by an independent board."
However, the government is making an important concession to banks, who were angered at the ring-fencing proposals.
It is looking at broadening the range of activities allowed within ring-fenced operations to include certain hedging tools, for instance to protect against interest rate and currency fluctuations, where these are sold alongside loans to small business clients.
Banks have been accused of mis-selling exactly such products to small businesses in the past.
"We felt that it was in the interests of business to ensure there was a wider range of instruments included in the ring-fence, including derivatives," Mr Hoban said.
"These products are widely used. There is a need for them."
The British Bankers' Association had warned that the original reform proposals could hurt the banking sector, and have a knock-on effect on the overall economy.
Labour's Ed Balls said there were still questions to answer, and accused the government of watering down the ICB's proposals.
"Why is the chancellor not making the statement? Or should I say the 'part-time' chancellor? What is the chancellor running scared of?" Mr Balls said.
“Start Quote
End Quote Steve Davies PricewaterhouseCoopersIt won't make our banks crisis-proof”
"Isn't the truth that having failed to deliver international agreement on tougher international banking standards, the chancellor is now being forced to water down and fudge the Vickers' reforms?"
The chancellor is expected to discuss the proposed reforms in his annual Mansion House speech on Thursday evening.
In his speech, he will say: "We've got to stop problems here in the City of London spilling onto our High Streets and putting taxpayers' money at risk.
"I believe that we have found a workable way to solve what I called the 'British dilemma' - so we are proposing to protect taxpayers in a way that does not make the UK uncompetitive as a home of global banks."
Higher costsSteve Davies, lead partner of retail banking at the business services firm PricewaterhouseCoopers, told the BBC that the reforms would not prevent another banking crisis.
"It won't make our banks crisis-proof. What this does is to enable a failed bank to be properly recovered in the event of a crisis.
"It does not prevent a credit crunch and it does not stop a run on the bank."
He added that the reforms were likely to push up the cost of banking: "The cost of implementing the regulation is going to be substantial and the regulations are likely to force the banks to hold more capital back and those costs will have to be passed on."
The banking reform plans will remain open for consultation until draft legislation is set out in the autumn.
Plans for the final legislation are expected to be in place by 2015.
France's Unibail in German shopping centre deals - The Guardian
Savoo Launches 'Grocery' Savings in Response to UK Research into Retail - PR Newswire
LONDON, June 14, 2012 /PRNewswire/ --
- mySupermarket and Savoo join forces to get Britain the deals it wants
- The UK's recession means we look for deals more than ever before
Research from Savoo, the UK's fastest growing money saving and voucher code website, shows the UK's shopping habits have changed dramatically in the last three years, but it is grocery shopping where the UK consumer wants to make the most savings and get the best deals. On the back of this informative research, Savoo has teamed up with mySupermarket in a ground-breaking initiative to offer its users access to the very best deals from all the UK major supermarkets.
Savoo's research shows a staggering 85% of women surveyed would use a discount code or coupon in supermarkets if it meant they would get a better price - perhaps indicating the UK is heading towards the extreme couponing culture of the US. Traditionally polite Britons are also changing their attitudes to using voucher codes, with 80% of respondents not being embarrassed to make a saving on the items they purchase compared with 70% two years ago.
Simon Bird, General Manager of Savoo commented, "This research shows how the UK is a nation of savvy shoppers using voucher codes and deals to get the best prices all the time with grocery prices, understandably being top of the agenda. We wanted to create an online solution for our members and we are delighted to be working with a brand like mySupermarket that has a first class solution to our problem"
James Foord, VP Business Development at mySupermarket remarked, "We are delighted to be working with Savoo to help more customers become savvy with their grocery shopping. With over 30,000 special offers currently available across the supermarkets, it's impossible for consumers to find the best deals for them, so we do this for them, helping them to cut their weekly grocery bill by 20%."
Other findings show the north / south divide strikes again, as it's the savvy people of Glasgow that make the most of discount vouchers by saving an average £526 a year on their grocery shopping, compared to the not so savvy people of Plymouth who only save £4.10 a week. Perhaps not surprisingly, it's the internet savvy young people of the UK that make the most of online deals and discounts with those aged 16-24 saving an average of £8.40 on their weekly shopping compared to those aged 55+ who save on average £5.
Savoo has over 200,000 deals on its site and is the only deal provider in the UK to offer consumers a 'personalised' deal newsletter and a customised and unique homepage. This page is packed with deals the consumers want and have asked for, eliminating the hundreds of daily deal emails and alerts that plague a user's inbox.
Notes to editors:
The research was carried out by Opinion Matters between: 16 / 02 / 2012 and 21 / 02 / 2012
Sample: 1365
To use the Savoo infographic please use the following embed code:
<a href="http://www.savoo.co.uk/blog/post/Infographic-How-We-Use-Discount-Vouchers.html"><img src="http://cdn.savings.com/logo/3236680.jpeg" width="500" alt=""/></a><br/> Produced by <a href="http://www.savoo.co.uk/">Savoo.co.uk</a>
About Savoo
Savoo http://www.savoo.co.uk prides itself on being the only UK voucher code and deal finder site which never knowingly lists expired vouchers or offer codes. Also, the best deal of each of their consumer categories is presented prominently using its unique algorithm which ensures that the best deals always rise to the top. Savoo has a dedicated team of researchers whose sole responsibility it is to find the best deals available 24 hours a day, and provide rigorous quality control.
Savoo's goal is to offer its customers the easiest and most powerful way to find, prioritise and distribute the best deals and information to help its users make intelligent decisions with their money. They extensively leverage technology, automation, community and elegant design to provide the most useful experience in a fun and rewarding way.
Savoo is the only voucher code site to offer a bespoke personalisation tool where visitors can now choose the deals and merchants they want to receive information on. Savoo now also offers consumers a comparison service that helps savvy shoppers get the best on mobile, broadband, flights and holidays.
Savoo launched in March 2009 and was created to address the frustration of generally which is a poor consumer experience from other discount and voucher sites. Savoo has been determined from the outset to build a more comprehensive Internet destination where users can find deals that suit them in a manner that's convenient to them. Savoo is the sister site of the highly successful US coupon and deal giant Savings.com http://www.Savings.com.
About mySupermarket
Founded in 2006, mySupermarket has grown from a small start up to a global retail site. It is the only independent grocery, wine and health & beauty shopping and comparison website in the UK. The site allows users to shop and compare products and prices across Tesco, ASDA, Sainsbury's, Waitrose, Boots, Superdrug, Ocado and Majestic Wine online stores. They are a 'one stop shop' for every single product available at the country's leading online supermarkets.
mySupermarket guarantees that shoppers will get the best possible value for money for their weekly shopping while enjoying an easier and more consumer-friendly shopping experience. With a record 30,000 special offers currently available, shoppers are guided towards the best deals, helping them to cut their weekly bill by 20%, saving an average family £800 over the year.
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