Britain's new coalition government will introduce a levy on banks under a major overhaul aimed at preventing another global financial crisis, according to a joint accord published on Wednesday.
"The parties agree that reform to the banking system is essential to avoid a repeat of Labour's financial crisis, to promote a competitive economy, to sustain the recovery and to protect and sustain jobs," the agreement between the Conservatives and the Liberal Democrats said.
"We agree that a banking levy will be introduced. We will seek a detailed agreement on implementation."
Britain's Conservative party struck a coalition deal with the Liberal Democrats that ended 13 years of Labour Party rule.
The pair said on Wednesday that they will seek to examine whether retail and investment banking divisions could be separated to lessen risk in the financial system -- which was a key plank of the Liberal Democrat manifesto.
"The parties wish to reduce systemic risk in the banking system and will establish an independent commission to investigate the complex issue of separating retail and investment banking in a sustainable way," they said.
"While recognising that this would take time to get right, the commission will be given an initial timeframe of one year to report."
AFP