The scale of the challenge faced by UK banks to regain the trust of the public following the Libor, PPI mis-selling scandal and taxpayer-funded bailouts has been starkly revealed by a new Chartered Institute for Securities & Investment (CISI) online survey of 750 members of the British public showing that 86% feel it’ll be at least five years before they trust a bank again.
Those taking part in the CISI trade body survey were asked to choose from four options: Almost a third (31%) believe that trust will not be restored in UK banks for more than a decade, while others said it’d take five years (29%) to restore trust, with 26% plumping for six to ten years and only 14% saying less than three years.
As one of the representative sample of UK consumers pointed out it could take a take a generation for the banks to be viewed positively again. “While we continue to see banks brought to account with no more than a financial penalty, the public will not forgive [what has happened],” commented the respondent. “Penalties need to be personal with those responsible losing their right to work in the industry and in some cases their freedom.”
The UK Parliamentary Commission on Banking Standards, which recently reported, has called for measures including a new law to jail reckless bankers for misconduct and for greater powers to claw-back bonuses, which seems to be chiming with the general ‘anti-bank’ mood at the moment.