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Definition: Independent Commission on Banking
The Independent Commission on Banking was established by the Government of United Kingdom in June 2010. The commission was set up to bring about reforms in the banking sector of the country following the global financial crisis in 2008.
The Commission was chaired by Sir John Vickers (a renowned British economist) and included four other members - Clare Spottiswoode, Martin Taylor, Bill Winters and Martin Wolf.The Commissioners were supported by a team of fourteen officials recommended from HM Treasury, the Department for Business, Innovation and Skills, the Financial Services Authority, the Bank of England and the Office of Fair Trading.
The Commission submitted its Interim report on 11 April 2011 and final report on 12 September 2011 to the Cabinet Committee on Banking reforms, UK Government. The following are the aims of the Commission’s recommendations:
i.reduce the probability and impact of systemic financial crises in the future;ii.maintain the efficient flow of credit to the real economy and the ability of households and businesses to manage their risks and financial needs over time; andiii.preserve the functioning of the payments system and guaranteed capital certainty and liquidity for small savers including small and medium-sized enterprises (SMEs).