Coalition Government outlines plans for banking sector reform

The Conservative and Liberal Democrat coalition Government will implement a banking levy and set up an independent commission to investigate separating retail and investment banking.

In a document outlining the agreements thrashed out by the newly-formed coalition, the parties have also promised "robust action to tackle unacceptable bonuses in the financial services sector". They also plan to bring forward proposals to give the Bank of England control of "macro-prudential regulation". The banking reform statement in full: "The parties agree reform to the banking system is essential to avoid a repeat of Labour's financial crisis, to promote a competitive economy, to sustain the recovery and to protect and sustain jobs. "We agree that a banking levy will be in...