The man who led an inquiry into the future safety of Britain's banks has said Bank of England plans are not strong enough.
Sir John Vickers, who headed up the Independent Commission on Banking (ICB), said: "The Bank of England proposal is less strong than what the ICB recommended."
In a BBC interview, he added: "I don't think the ICB overdid it."
The Bank of England declined to comment.
Sir John has specifically questioned the plans to ensure that banks have enough capital.
Capital is considered vital to a bank's safety, as it serves to protect it from sudden losses. It comes in many forms, but the most common is funding from shareholders, who expect a hefty return on the risk they are taking.
The backdrop to this news is the current slump in bank share prices across Europe. Since the start of the year, European banking stocks have lost a quarter of their value.
The Bank of England "might want to reflect on the turmoil we've seen in banking shares", Sir John told BBC Radio 4's Today programme.
"That's a very important lesson that you have to get the basics right," he said. Read more...
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