By Marcus Leach

Business Secretary Vince Cable is to press ahead with banking reforms, despite being told it would be 'barking mad' to do so now.

John Cridland, director general of the Confederation of British Industry's (CBI) warned that any action taken to reform the banks at present would be 'barking mad'.

Speaking to the Times Vince Cable hit back saying that the changes have got to happen. Ensuring taxpayers are not liable for any future losses or bank collapses, and ring-fencing banks' retail operations are among the proposals.

"It is disingenuous in the extreme to use the current context to argue against reform," he said.

"Banks are in a way trying to create a panic around something which they know has got to happen.

"The governor of the Bank of England and many other people have been arguing that we have to deal with the too-big-to-fail problem.

"We can't have big global banks with balance sheets bigger than British GDP underwritten by the taxpayer; this can't go on and it has got to be dealt with."

The Independent Commission on Banking's final recommendations are due on 12 September.

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