Sound banking : delivering reform

The final report of the Independent Commission on Banking (ICB), chaired by Sir John Vickers (2011, ISBN 9780108510984) recommended a dual approach to reform of the banking sector: ring-fencing vital banking services and increasing banks' loss-absorbency.

The Government issued a consultation paper (Cm. 8356, ISBN 9780101835626) setting out how it intended to implement the Commission's recommendations. "Sound banking: delivering reform" provides an overview of responses to the consultation as well as a draft Bill and explanatory notes, ahead of pre-legislative scrutiny by the Parliamentary Commission on Banking Standards.

While the draft Bill focuses on banking reform, other changes will also be brought forward.

These include reform of the Payments Council and changes to the governance structure of the Financial Services Compensation Scheme, which will be included in the Bill when it is introduced to Parliament in 2013.

This paper is divided into three parts: an overview of the key policy areas covered in the draft Bill; the draft Bill and explanatory notes; and annexes include the summary of responses to the consultation and the impact assessment.