UK banking centre 'to become more streamlined'

17 January 2012

The UK banking centre is becoming more streamlined, with the Square Mile in London reducing in size at a faster rate than any other financial district on the planet.

Bloomberg reports more financial sector employees in the nation were fired than in any other country in 2011, while pressure continues to mount on the industry to impose more pay restrictions and to carry out greater levels of job cuts.

In addition, banks in the City are battling against declining trade revenue and the government is pushing for them to divide their consumer and investment banking units.

Micheal Kirkwood, the former head of the UK division of Citigroup - an organisation that has existed for more than 200 years and is split into two units, Citicorp and Citi Holdings - claimed the financial sector is likely to become smaller and more focused.

The industry figure stated: "The entire financial world became too bloated in the run-up to the financial crisis - and London was excessively bloated."

By Asim Shah