George Osborne reforms will devalue British banks, analysts warn "The UK seems to be "going it alone" relative to Europe, where the Liikanen proposals appear to be softened, especially on the issue of ring fencing," said the analysts in a note. Anthony Browne, chief executive of the BBA, said: "This will create uncertainty for investors, making it more difficult for banks to raise capital which will ultimately mean that banks will have less money to lend to businesses. Andrew Tyrie chairman of the Parliamentary Commission on Banking said: "A reserve power to split up any bank that tries to undermine the integrity of the ring-fence will increase the chances of its success. Banks require discouragement from gaming the rules. They will always try to do so unless strong disincentives are put in place. Business lobby groups cautioned the Government not to damage the UK economy with the reforms. Adam Marshall, director of policy at the British Chambers of Commerce (BCC), said:"Banking reform must be considered in the context of the economy as a whole. It is vital to business that the UK banking system is safe, but the litmus test for any banking reform is whether it unwittingly creates extra barriers for firms seeking finance. The new regulations proposed in the Banking Reform Bill must be carefully designed and implemented to avoid perverse consequences. We cannot afford to see "collateral damage" among Britain's businesses as a consequence of banking reform." Mr Osborne said the reforms will help small firms. He promised to intervene to speed up the payment processing in the UK, criticising the dominance of the Big Four banks in the market. "Why is it that big banks can move their money around instantly, but when a small business wants to make a payment it takes days?" said Mr Osborne. The system isn't working for customers, so we will change it.