Bank ringfencing plans 'threaten UK growth'

Economists have warned the Independent Commission on Banking (ICB)'s plans to ringfence UK banks' retail and investment divisions could threaten economic growth.

Leading economists, led by a former senior government adviser, cautioned the changes could slow growth at a potentially critical time for the British economy, the Telegraph reports. “We are more dependent on banks right now to get the economy moving again than we have been for some time,” warned Vicky Pryce, the former joint head of the Government Economic Service, who is now a senior managing director at FTI Consulting. “We need them to lend, and so this has come at completely the wrong time. At such times, you need to add relaxation and ask banks to lend more.” Roger Bootle, mana...