U.K. Fund Chiefs Support Banking Commission’s Proposals, FT Says
Several U.K. fund managers welcomed the reforms proposed for Britain’s banking sector, the Financial Times reported, citing comments from the managers, who included David Lis, head of U.K. equities at Aviva Investors; Richard Black, U.K. equities fund manager at Legal and General Investment Management and James Alexander, head of equity research at M&G Group Plc, .
A “largely silent majority of investors,” are in favor of the introduction of structural reform and more stringent capital requirements, Alexander said, according to the FT.
The Independent Commission on Banking’s interim report recommending ring-fencing U.K. retail banking operations and making them hold more capital is “a decent compromise between ensuring a safer banking system without putting the U.K. banks at an international disadvantage,” Black said, the FT reported.
Lis said higher capital requirements “should strengthen the system without damaging the economy in terms of compromising the banks’ ability to lend,” the FT said.
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