Chancellor to split banks' high street and City arms The paper will also address the issue of industry competition and put forward measures to make it easier for customers to switch banks. As part of this, the Bank of England and the Financial Services Authority will be asked to carry out reviews into what further changes are required to encourage new entrants into the British banking market. In recognition of the complex challenges demanded of banks, the industry will be given until 2019 to comply with the changes. The legislation required to enact the new rules will be put in place by the end of 2015. HSBC was concerned that a requirement to hold additional capital against its entire non-British business could saddle it with tens of billions of pounds in extra costs. However, the government will confirm that it is unlikely to be forced to do this, so long as it can persuade regulators its global operations pose no risk to the British financial system. "I believe that we have found a workable way to solve what I called the "British dilemma" - so we are proposing to protect taxpayers in a way that does not make the UK uncompetitive as a home of global banks," Mr Osborne will say. Yesterday, outgoing FSA chief executive, Hector Sants, made his own intervention on banking reform, warning that the government's plans risked handing too much power to the Bank of England. "I think the risk is that operationally this is going to be too difficult for just one person to manage," said Mr Sants.