6: The Vickers report: ringfencing is a good idea, but no panacea - risk weights are crucial

Viral Acharya interviewed by Viv Davies, 23 September 2011Viral Acharya of New York University talks to Viv Davies about the recent report issued by the UK's Independent Commission on Banking. They discuss capital requirements and the proposal to ringfence bank’s retail versus investment activities. They also discuss the likely costs of the proposals and what the implications may be for competition in the banking sector. Acharya stresses in particular the importance of appropriate risk weights even with ringfencing, especially in context of the current Eurozone debt crisis. The interview was recorded on 16 September 2011.