Banks 'capable of outmanoeuvring regulations'

www.moneynews.co.uk > Banking > Banks 'capable of outmanoeuvring regulations'

Banks 'capable of outmanoeuvring regulations'

Thu 17th Jun 2010

Tighter regulation internationally will help to keep financial institutions in line, but many banks will still be able to get around some regulations.

This is the view of head of consumer finance at lovemoney.com Ed Bowsher, who made his comments regarding a report by the Future of Banking Commission.

It featured 39 proposals that could reform the finance industry, such as the compulsory introduction of the separation of banking activities.

Mr Bowsher suggested that the ideas suggested have the potential to avert another crisis, but he noted it is important not to underestimate the ability of bankers to bend the rules.

"There are plenty of clever people who will think up new risky ways of increasing profits whilst staying on the right side of the rules," he said.

In his opinion, it should not only be important to regulate financial services providers in Britain, but also those across the world.

Click here for more banking news

Related News : Banking
	Young people 'should be taught to save'
	Families 'should plan for their children's future
	Switching bank accounts 'not as easy as banks portray'
	Brits facing finance difficulties 'should talk to their bank'
	Brits 'should utilise Isa allowances'
	Brits advised on investment options
	Children 'should be given bank accounts at 16'
	Falling inflation 'could help Brits save'
	Money worries 'are mounting for many'
	Contactless payment 'is secure and convenient'