Bank of England rejects claim it has watered down ringfencing plans

Sir John Vickers accused Bank of stepping back from proposals on how much capital banks should hold to endure heavy losses

The Bank of England has rejected criticisms from the architect of banking reforms that it has watered down its approach to ensuring the UK's banking system is strong enough to withstand heavy losses.

Sir John Vickers - appointed by the 2010 coalition government to design ways to avoid another taxpayer bailout of the system - has argued that Threadneedle Street is stepping back from his proposals for how much capital banks should hold.

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