Banks call for regulation debate

Customers and banks would benefit from more streamlined regulation of financial services the British Bankers’ Association said today.

Speaking at the BBA’s annual general meeting chief executive Angela Knight said it was time consumers, industry representatives and government got together to discuss how business could be encouraged to grow while ensuring customers found it easier to get mistakes sorted out.

Ms Knight said she welcomed the views of the Financial Services Consumer Panel which, in its annual report today, called for statutory regulation of financial services. She said, however, that in her view the panel’s recommendations did not go far enough and it was now time for a root and branch review of both services and credit regulation.

Chief Executive Angela Knight CBE said: “Banking and financial services in the UK is a truly global business and needs the right regulatory framework to continue its success. The industry provides jobs for over 4 million and each day processes millions of transactions providing everything from savings and overdrafts to mortgages and business financing. Without the continuing viability of the industry UK plc the government would have a black hole in its finances, the balance of trade gap would widen and we would all be facing an even deeper pension’s crisis.

“But continuing success needs effective regulation – both for banks and customers. Banks need clarity about which regulator deals with what and we cannot continue with a system where you can be judged wanting over here – and then hauled over the coals for the same thing by someone else. And often all at the same time. This would help customers as well as a simple straightforward system would made it easier to sort out problems.”