Independent Commission on Banking
The Independent Commission on Banking (ICB) proposals represent a significant change to the banking landscape. How can you deal with the implications?
All political parties have come out in support of the ICB, although the full consequences will only become clear once the Government decides what should be passed into law. Key considerations include:
Shaping strategy
- How can the ring-fence be shaped to make it workable and avoid unintended consequences?
- How can the business model implications and international competitiveness be addressed?
- What are the continued benefits of being a universal bank and how can the most be made of the remaining synergies between retail and investment banking?
- With the ICB set to impose tougher capital demands than Basel III, how the impact on costs and balance sheet structures be managed?
- How can the impact of rising funding costs be alleviated?
- How will risks management be more effectively under the new arrangements?
Astute separation
- With some flexibility at the edges of the ring-fence, precisely what assets, customers and risks should be included?
- How will the demands of ‘economic independence’ affect funding, governance and the sharing of operations?
Managing implementation
- With detailed implementation plans yet to be worked out, how can consultations be best influenced?
- How can the need for entity self-sufficiency with operational efficiency, cost control and shared service arrangements be balanced?
- With businesses already facing a raft of regulatory changes, how can the potential upheaval and execution risks of implementation be mitigated?
- How can investors be assured that implementation plans are on track and ready for the post-ICB world?
