Bank reforms not tough enough, MPs tell Osborne

The Commission on Banking Standards has told the government its plans to reform the UK's banking sector are not strict enough.

Chancellor George Osborne plans to force banks to ring-fence their investment banking and retail arms and hold higher capital buffers. However, the Commission, led by chairman Andrew Tyrie MP (pictured), said the leverage ratio imposed on the banks is "too low". Current international standards propose that banks have a leverage ratio of 3%, but the Commission said the Bank of England must be given the power to set a higher cap in line with previous recommendations lenders should have their assets limited to 25 times their core capital. Osborne has insisted the 3% level will be suffici...