Banking Commission Report

Lord Brennan of Canton Excerpts

Monday 19th December 2011 Commons Chamber

[Kevin Brennan (Cardiff West) (Lab)]

What assessment has the Chancellor made of the proposal in the ICB report to apply a blanket leverage ratio across all financial institutions, and in particular of the possible unintended consequences that that could have for building societies?

[Mr Osborne]

That is an issue that some building societies have raised with us. That is why we say in the report that we are attracted to a leverage ratio—indeed, it is now part of the international regulatory architecture—but that we will consult on exactly how to implement it so that it does not have a perverse impact on building societies, which have served customers well throughout this period.