Reforms to make banking competition work for consumers have reached an impasse. Do nothing and we can expect nothing to result, but even with Project Merlin – which was established by the four major UK banks (HSBC, Barclays, Royal Bank of Scotland and Lloyds Banking Group) and hopes to improve stability and competition between banks – lending fell for Britain’s top banks in every quarter a year after its implementation. So does that mean we are all out of ideas to make banking competition work? Absolutely not. But how do we make banking competition attractive for both consumers and banks themselves? In a recent briefing paper for the Centre on Household Assets and Savings Management, I discussed the development of a Responsible Banking Ordinance (RBO) in the US and raised the prospect of introducing RBOs in the UK. An RBO is a specific evaluation guideline which banks must complete in … (To read the full article, subscribe below)
Carl Packman is a writer, researcher and blogger. His latest book is Payday Lending: Global Growth of the High-Cost Credit Market, published by Palgrave Macmillan in 2014.
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