Labour's 'banking revolution'

Commenting on Ed Miliband's speech on reforming banking, Adam Marshall made this statement on behalf of the British Chambers of Commerce (BCC):

David Hillman, a spokesman for The Robin Hood Tax campaign, had this response to Ed Miliband's proposals to reform the banking sector:

Ed Miliband has suggested that bankers should have a 'code of conduct' and should face being struck off if they break the rules.

He has also pointed out that the annual budget of the Serious Fraud Office is currently one tenth of the amount Barclays paid in fines for rigging the Libor rate.

Ed Miliband has said that the four largest banks - which account for 85% of the market - should be broken up. He said: "if we want a productive banking sector we should break up our big banks"

Ed Miliband is describing how to move from the "casino banking we have to the stewardship banking we need".

He said banks no longer care about the success of the firms they lend to because they are too concerned with making an "immediate return".

He said banks should have a "fundamental duty to serve the real economy".

The Labour leader Ed Miliband is giving a speech at the Co-operative Bank in London.

He has called for "an economy based not on the short-term, fast buck, take-what-you-can culture we see too much of in our banks today. But on long-termism, patient investment, and responsibility shared by all."

The Business Secretary Vince Cable has described the proposals that Ed Miliband is expected to make in a speech on banking as "uncontroversial".

"We know that there’s a lot more has to be done, and a key part of it – as Mr Miliband has been saying – is getting in more competition," he told Sky News.

He said there is already more competition in the banking sector: "Lloyds have sold off branches to the Co-op, Nationwide are getting into business lending, you’ve now got the Metro bank, Virgin Money, and we want to encourage more banks."

The Labour leader Ed Miliband will make a speech at 10:30am about how to reform banking in the UK following the Libor rate-rigging scandal. Here are his main proposals:

• Culture shift from "casino" banking to "stewardship" banking
• Creation of two "challenger" banks to break up dominance of the 'Big Five'
• 'Big Five' to sell off a further 1,000 branches to competitors
• A 'code of conduct' for bankers, as there is with doctors

• A cap to limit bankers' bonuses to the same amount as their annual salary

The Shadow Business Secretary Chuka Umunna has hinted at his party's plans - to be unveiled later today - for a British investment bank to stimulate lending to businesses.

Speaking on ITV Daybreak, he also said that bankers should not get bonuses "simply for doing their job".

Ed Miliband will set out a blueprint for fundamental reform of the banking system today, including forcing the "big five" to sell up to 1,000 more branches to increase competition.

The Labour leader will point to the Libor rate-fixing scandal as vindication of his much-criticised attack last year on "predatory" capitalism and promise wide-ranging action.