The Vickers report is elegantly argued, long and detailed. It has been welcomed in official quarters. But its proposals risk damaging a vital sector of the UK’s economy, hitting tax revenue and employment. Moreover, it does not achieve total bank safety. Its main target is the universal bank model, the combination of commercial and investment banking. But a well managed universal bank can be perfectly safe – something that is not fully recognised – and while the commission recommends increased regulation, relying on regulation without good management does not guarantee safe banking.

The report does not address the serious worries now besetting the European financial sector, which result not from mistakes by bankers so much as blunders by European Union governments in the management of the euro. Its remit is the more remote future.

The report is sound when dealing with competition. As to the rest I remain sceptical. The ringfencing proposal involves much detailed regulation. But there is an inherent problem with this approach. When governments decide that retail depositors must not lose money and that some banks are too big to be allowed to fail, regulation becomes essential, and the importance of sound management is diminished.