UK banks need to focus on lending and paying back taxpayers and should not be distracted by more regulation, the head of the British Bankers' Association has said.
Speaking ahead of the Independent Commission on Banking's final recommendations due next month, Angela Knight said regulatory change could undermine the recovery. She said in light of the on-going Eurozone debt crisis and stock market volatility, the focus for banks should be on the recovery, not on dealing with more regulation, the BBC reported Knight saying, "From now on, the UK's efforts must be focused on the economic recovery……this means allowing the banks to finance the recovery first, pay back the taxpayer next, and only then turn to further regulatory change……..if more regulation remains at the top of the list then this will only have the effect of risking the recovery which is so essential to our future."
The commission has already recommended ring-fencing banks' retail operations from their investment banking arms.
Last month, business secretary Vince Cable indicated banks could still be forced to separate entirely their High Street businesses from their investment divisions.
There is little we can do to influence these decisions and the government may not have many options but if you want to reconsider any of your investments in the light of any possible future changes talking to an IFA is a good way to assess your options. Enable of Bishop Stortford are here to help.
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