At least one of Britain’s major banks should be broken up into smaller regional lenders, the Archbishop of Canterbury, who sits on an influential banking reform committee, said on Monday.
Justin Welby, spiritual head of the Anglican Church, spoke in a personal capacity, but his comments offer insight into the thinking of the Parliamentary Commission on Banking Standards which has the role of cleaning up Britain’s banking culture.
“In simple terms, we need to recreate the local, and the easiest way to do that, as well as bringing new entrants in, is to kill two birds with one stone by recapitalising at least one of our major banks and breaking it up into regional banks,” Welby told an audience in London that included business leaders and politicians.
The commission is due to publish a report in May on how to address the ethical problems in the City of London exposed by a series of scandals. The report should also look at the impact on competition.