US president Barack Obama's plans to create smaller banks to break up the banking system have been slammed by John Varley, Barclays chief executive.
When compared to smaller banks, larger organisations present no more risks, the chief executive said as he appeared in front of the Treasury Committee.
Mr Varley said: "Size is irrelevant. What matters is risk. Big banks have tended to be more stable in history. The system would not be served by making big banks smaller but by making all banks safer."
Although he admitted that a banking reform was required so that the tax payers do not have to bail out the banks in the future, Mr Varley said he did not believe that making banks smaller would help.
New rules for universal regulation would be a better way to achieve a safer banking system, the chief executive told to the committee.
Barclays bank revealed in January that it intended to defer the bonuses of Mr Varley and other top executives for three years.
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