Osborne confirms Sir John Vickers to head banking commission

Chancellor George Osborne has confirmed Sir John Vickers will head up the new banking commission investigating whether or not Britain's biggest banks should split their retail and investment divisions.

Osborne, speaking at Prime Minister's questions, said: 'We will establish the commission on banking to be chaired by Sir John Vickers.'

Osborne said Vickers, who previously headed up the Office of Fair Trading and was also chief economist at the Bank of England, was a man of 'unquestionable experience.'

He also confirmed plans to hand over additional powers to the Bank. 'Our plan is to hand over responsibility of macro prudential supervision to the Bank of England,' he said.

'We are also going to give the Bank oversight of micro prudential supervision.'