Banks may save £10bn under proposals

BANKS may save about £10 billion (€11.38bn) in capital and other costs under proposals being considered by the Britain’s Independent Commission on Banking aimed at securing the financia lsystem against the collapse of a single lender, a person with knowledge of the plans said.

Banks may save £10bn under proposals

The commission may suggest banks segregate their consumer banking operations and capitalise them separately, a cheaper alternative to earlier proposals outlined by ICB chairman John Vickers in January, said the person, who declined to be identified.

The proposal would lead to one-time costs in the low billions of pounds rather than the £15bn maximum estimated annual cost of full-functional or geographic segregation, where banks would turn their units into stand-alone subsidiaries, two people with knowledge of the talks said.

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