BoE bank safety buffer plan criticised; HSBC decides to stay in UK

Proposals under fire from Sir John Vickers

Bank of England (BoE) proposals to ensure banks have enough capital are not strong enough, according to Sir John Vickers who led the UK's recent retail banking reforms.

As head of the Independent Commission on Banking (ICB), Vickers previously proposed rules to ringfence bank's retail operations, but warns these have since been watered down by the central bank. Writing in the Financial Times, he said: "The BoE is proposing substantially milder equity requirements for British banks than did the ICB. The wisdom of this policy is questionable." His argument focuses on systemic risk buffers, after the BoE published proposals which would require UK banks and building societies to have extra capital if they hold more than £175bn of assets when weighted for...