THE Archbishop of
Canterbury has spoken in support of attempts to tighten regulations
Speaking during the Report
Stage of the Financial Services (Banking Reform) Bill in the House
of Lords on Tuesday, Archbishop Welby said that "in my ten years'
experience of dealing with conflict-management and mitigation work
in Africa, it was particularly significant in the ways in which
illegal regimes or militias managed to fund and supply
"My experience, particularly
in some parts of Africa, has shown that London, over time, as one
of the deepest and most liquid financial markets on earth, has,
contrary to the impression given by many senior bankers, played a
significant role; not through their collusion in any way at all,
but because of its size, and the complexity of preventing it."
The tightening of the
regulations was proposed in an amendment moved by Lord Eatwell, who
withdrew it before the vote, to allow for a response from the
Treasury, after opposition from the Government.
Archbishop Welby withdrew a
number of his own amendments to the Bill, dealing with the
separation of consumer banking from the ris-kier investment-banking
activities dubbed "casino-banking", after the Government promised
to introduce its own amendments at the Third Reading stage.
"The members [of the
Parliamentary Commission on Banking Standards] are delighted that
the Government are broadly finding agreement with their
recommendations," the Archbishop told peers.
Lord Sharkey withdrew an
amendment that would have required a cap to be set on the cost of
payday loans, after the Government promised that it would introduce
its own amendment at Third Reading, which would require the
Financial Conduct Authority to cap the cost of payday loans.
wholeheartedly agree that consumers must be protected when they
borrow from payday lenders and use other high-cost forms of
credit," the Treasury Minister Lord Newby told peers. "Payday
lenders are causing unacceptable consumer harm, and the Government
are committed to putting that right."
The Government suffered a
defeat on Tuesday evening after the Lords agreed by five votes to
an amendment from Lord Eatwell, requiring a licensing scheme for
senior bankers to ensure compliance with professional
The Report stage of the Bill was continuing on Wednesday