The recommendations on financial stability call for both structural reform and enhanced loss-absorbency within UK banks. Structural change in UK banking markets is recommended in order to promote competition in the sector.
The Commission's recommendations aim to:
reduce the probability and impact of systemic financial crises in the future;
maintain the efficient flow of credit to the economy and the ability of households and businesses to manage their risks and financial needs over time; and
preserve the functioning of the payment systems and guaranteed capital certainty and liquidity for small savers including small and medium-sized enterprises (SMEs).