Banks still not learnt their lesson
Published ¤ 08/08/2012 10:36:48
Five years on from the day the global financial crisis officially started and the public are more disillusioned with the banking sector than ever before.
As the parliamentary inquiry on banking standards prepares to get underway, a new Which? survey has found almost three-quarters (71%) of people don't think UK banks have learnt their lesson from the financial crisis – up from 61% in September 2011.
Consumers also have low expectations that the inquiry will lead to change, with only a quarter of people (26%) confident that it will lead to positive improvements in UK banks.
Since the start of the financial crisis consumers have been bearing the brunt of the recession with the Which? latest wellbeing survey showing that nearly half are worried about mortgage rates (45%) and the level of their household debt (42%).
At the same time, consumers have been hit by a series of bank scandals, which have further exposed the broken culture and mismanagement in UK banking. These include the mis-selling of Payment Protection Insurance (PPI), which is now on course to be the biggest financial scandal of all time, Libor interest rate rigging, and IT system failures at Natwest and Nationwide. Which? is calling for the banking inquiry to produce tough new proposals to force banks to work better for consumers by tackling the lack of culture and competition in banking.
Other findings from Which? are:
Which? chief executive Peter Vicary-Smith said "Five years on from the beginning of the financial crisis, public confidence in the banking industry is at an all time low, with a series of scandals exposing mis-management and corruption at the very heart of the banking system that have cost UK consumers dear.
"The parliamentary banking inquiry must produce proposals for fundamental change to the culture and practices of the banks and put the best interests of consumers back at the centre of reforms. Nothing should be off the table if the Government is to rebuild consumer confidence in this essential service."
Which? wants the inquiry to focus on the needs of consumers, and to make recommendations for handing power back to bank customers and transforming the culture and level of competition in the banking sector to achieve this.
¤ 22/11/2017 10:59:05
¤ 13/10/2017 09:07:18
¤ 12/07/2017 13:04:59
¤ 17/05/2017 14:12:43
¤ 15/05/2017 16:38:38
¤ 24/11/2016 10:01:42
¤ 07/11/2016 13:37:51
¤ 12/04/2016 15:03:26