The U.K. Independent Commission on Banking is said to be considering a minimum capital buffer for banks in addition to equity. Sources said that the ICB, led by Sir John Vickers, is looking at a buffer of 4% or 5%, when it releases its recommendations to the U.K. government in a final report set for September. Vickers, appearing before the House of Commons Treasury select committee, also said it is “unrealistic” to fully eliminate taxpayer-funded bailouts as there will always be “some circumstances in which government would feel compelled to come to the rescue of some parts of the banks.”
