British banks get time for reforms

Britain’s banks won plenty of time on Monday to make costly structural reforms after the government backed recommendations that lenders have until 2019 to “ring-fence” retail operations and hike capital reserves. Finance minister George Osborne said that the coalition would begin drawing up new legislation backing the government-appointed commission’s call that banks such as HSBC and Barclays implement sweeping reforms. They are facing radical change in order to avoid a repeat of the massive state bailouts of lenders. The Independent Commission Banking recommended in a final report on Monday that lenders’ retail operations should be protected against losses at their investment units.