British bank should reform by 2019: independent commission

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Britain's banks should implement major reforms aimed at avoiding further state bailouts of lenders by 2019, a government-appointed commission recommended in a final report on Monday.

The Independent Commission on Banking confirmed its initial proposals published in April that called for a "ring-fencing" of lenders' retail businesses, thus avoiding banks being sunk by investment division losses.

"The commission believes that banks should be strongly encouraged to implement any operational changes as soon as possible," the ICB said in its report.

"But, particularly given the additional capital the measures will require, an extended implementation period would be appropriate for what amount in combination to fundamental and far-reaching reforms intended for the longer term.

"Implementation should however be completed at the latest by ... the start of 2019," the report added.

© 2011 AFP

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