The UK government’s effort to streamline banking operations of all banks including retail and investment banking will cost GB7bn annually.
The government is considering all viable options to save consumers and prevent the occurance of banking crisis that led to spending of huge taxpayers money in the form of bailouts packages in 2008, as reported by Reuters.
More than GNP60bn public money was used to save troubled RBS and Lloyds, which is still struggling to emerge from recession.
The government has presented its banking reform plans in a "White Paper," which will be followed by draft legislation in the autumn.
Few plans that await banks involve ringfencing their domestic retail and commercial operations, maintaining a large capital base to meet regulatory challenges as well as sustain in any sudden financial crisis.
The Confederation of British Industry was qouted by Retures as saying that the proposals for additional capital requirements are above and beyond those already agreed internationally, which will make it harder for banks to lend to businesses.
Defending the reforms, the UK treasury minister Mark Hoban said,"We will ensure that British banks will be resilient, stable and competitive and so attractive to investors at home and abroad," he told parliament. "The euro zone crisis makes reform more, not less, important."