Independent Commission on Banking (ICB) Commissioner, Sir John Vickers, is pushing to abolish Government subsidy in the hopes to lift financial institutions from taxpayer funding and establish independence.

About ten billion pounds are collected off funding costs every year due to bondholders and other loan providers the government is willing to give their aid to.

Vickers is determined to get rid of tax payer subsidies and is hopeful that last month, April’s proposals will give financial institutions stability. He already testified before the Treasury committee before September unveils its final ICB report.

The findings suggest retail savings banks should enhance their capital ratio to 10% and ring fence them from making risky “casino” investments. The report went short to an order of a full separation, which had many speculating if Vickers had anything to do with the break up.

Analysts on the other hand, praised Vickers’ proposals saying it is a “step towards convergence for global banking regulation by bringing the UK rules closer to those of the US and some parts of Europe.”

He however, denied the allegations and defended himself,  “Total abolition [of the taxpayer subsidy] is unlikely. There are always going to be some circumstance in which the government would feel compelled to come to the rescue of at least some parts of the banks”

They also stated that the threat of moving overseas by banks should be viewed as a “lobbying maneuver”.