UK bank lobby opposes cash savers rate proposal

( January 9, 2020, 13:08 GMT | Official Statement) -- An industry association representing major UK banks has criticized a move from the UK’s Financial Conduct Authority which proposed that banks and building societies offer cash savers a single interest rate. UK Finance said the finance industry has “already implemented a number of remedies to improve competition in the cash savings market,” including communicating with customers more clearly. Regulatory intervention increases the cost of deposit funding for institutions and will result in lenders having to raise the costs of loans to other borrowers, it said in a statement today. The FCA issued the proposal today, which it said is necessary to prevent lenders from gradually reducing interest rates after customers are lured in with introductory offers. Statement from UK Finance follows....

Prepare for tomorrow’s regulatory change, today

MLex identifies risk to business wherever it emerges, with specialist reporters across the globe providing exclusive news and deep-dive analysis on the proposals, probes, enforcement actions and rulings that matter to your organization and clients, now and in the longer term.

Know what others in the room don’t, with features including:

Daily newsletters for Antitrust, M&A, Trade, Data Privacy & Security, Technology, AI and more
Custom alerts on specific filters including geographies, industries, topics and companies to suit your practice needs
Predictive analysis from expert journalists across North America, the UK and Europe, Latin America and Asia-Pacific
Curated case files bringing together news, analysis and source documents in a single timeline

Experience MLex today with a 14-day free trial.

Start Free Trial

Already a subscriber? Click here to login

UK bank lobby opposes cash savers rate proposal

Prepare for tomorrow’s regulatory change, today

Related Sections