Welcome for banking reform plan

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YORKSHIRE Building Society yesterday said it supported a report calling for a “fundamental overhaul” of the banking system.

The Government is today expected to support the findings of the report by the Independent Commission on Banking (ICB), which says lenders should be forced to split their retail and investment banking arms.

Chancellor George Osborne is expected to pledge to enact all primary and secondary legislation stemming from the report. The reforms are expected to be in place by 2019.

A Yorkshire Building Society spokesman said the society was “broadly supportive” of the report’s findings, and added: “We are pleased to note that the ICB in many parts of its report, in discussing the detail of retail ring-fencing, has made references to existing building society legislation and practice as an example of a desirable business model that other participants should adopt.”

A Yorkshire Bank spokesman said: “Yorkshire and Clydesdale Banks have weathered the economic downturn through a prudent, traditional approach to banking; with strong capital and the vast majority of our lending funded through retail deposits and long-term funding. This approach continues to serve us well.”