BSA urges state to cut dominance of major savings accounts suppliers

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BSA urges state to cut dominance of major savings accounts suppliers

Mon 27th Sep 2010

The dominance of the major players in the UK retail banking sector should be reduced through new regulation, says a spokesperson from the Building Societies Association (BSA).

Adrian Coles, director general of the organisation, made his comments ahead of the publication of the Independent Commission on Banking's Issues Paper.

He said he welcomes the report and hopes it will look at methods of breaking down the power the handful of state-backed institutions currently have in the mortgage, current account and savings product industries.

In his opinion, the government should be sure to support UK mutuals, as they are not quite as profit-motivated as some firms.

"We need a significant part of the financial system to concentrate on satisfying customers' needs, rather than shareholders' returns," stated Mr Coles.

Consumer watchdog Which? also released a statement regarding the Issues Paper, suggesting major reform is necessary to ensure the taxpayer is never again required to foot the bill for the financial sector's mistakes.

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