Written question asked by Lord Myners (Labour), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Tuesday, 13 December 2011.

Banking: Levy

Question: To ask Her Majesty’s Government whether the implementation of the Independent Commission on Banking proposals to enhance the safety of United Kingdom retail and commercial banking will obviate the case for a bank levy.

Answer: The purpose of the bank levy is to ensure that the banking sector makes a fair contribution, reflecting the risks that banks pose to the financial system and the wider economy. The levy is also designed to encourage banks to move away from riskier funding models. The bank levy is not a charge in relation to any implicit guarantee. The bank levy and the Independent Commission on Banking proposals are, therefore, complementary elements of the Government's reform agenda.

Secondary information