City Of London
Banks Need to Earn Greater Deposit Protection, Vickers Says
- UK’s customer protections after failures could be expanded
- Ex-BOE economist says capital should be higher in this case
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One of the architects of Britain’s financial regulation has called for higher capital charges on banks as a “quid pro quo” if the government decides to strengthen deposit guarantees in the wake of Silicon Valley Bank’s collapse.
John Vickers, who led the commission that designed ring-fencing to protect retail customers over a decade ago, said shielding more client money from bank failures would ultimately expose taxpayers to more risk.