Head of StanChart lashes out at bank reforms
Peter Sands, the chief executive of Standard Chartered, launched an attack on the reforms proposed by Sir John Vickers' Independent Commission on Banking yesterday and suggested that regulators should be prepared to water down the proposed "ring-fencing" of retail banking and the higher capital ratios that Sir John prescribed.
Speaking at the World Economic Forum in Davos, Mr Sands suggested that the Vickers proposals might actually make the UK financial system more unstable.
"The banks that we see fail – and the data completely support this – tend to be small, regionally concentrated retail banks and wholesale-funded medium-sized wholesale banks. But this appears be exactly the kind of model of banking that the ICB are actually putting forward," he said.
"So I do think that we need to be quite careful in thinking that structural change is a panacea or is necessarily going to improve the fragility of the system."
Mr Sands, who became CEO of the UK-headquartered global bank in 2006, also said regulators should be prepared to respond to the "unintended consequences" that the reforms would throw up by being "adaptive".
"It is inevitable when you are changing so many aspects of the regulatory architecture that you will get outcomes that you don't expect," he said.
"I don't think the regulatory community should be embarrassed or apologetic about that because when you change a lot of stuff, that's going to happen. What I do think people should take on board is that in that context you need to be adaptive. You need to say 'this hasn't quite worked out the way we thought, let's change it a bit'."
He added: "That's not giving in to lobbying, it's just being sensible."
Emergency landing at Heathrow sparks further controversy over London airport capacity
Unrest may spread across Europe, warns Red Cross chief
French government seeks to ban extreme right-wing group
BNP and EDL accused of attempt to fuel racial hatred after Woolwich terror attack
You want to get an Eton scholarship? All you need to do is answer four (not so simple) questions
- 1 What, let gays get married? We must be bonkers
- 2 Rocky Horror star Tim Curry 'suffers major stroke'
- 3 Exclusive: How MI5 blackmails British Muslims
- 4 Lord of the Sings: Sir Christopher Lee, 91, to release heavy metal album
- 5 Exclusive: Woolwich killings suspect Michael Adebolajo was inspired by cleric banned from UK after urging followers to behead enemies of Islam
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Nook is donating eReaders to volunteers at high-need schools and participating in exclusive events throughout the campaign.
Get the latest on The Evening Standard's campaign to get London's children reading.
Win anything from gadgets to five-star holidays on our competitions and offers page.