UK banks support regulatory change, organisation states

3 March 2010

The UK banking industry supports the need for regulatory change but not at “the expense of recovery and future growth”, a banking industry organisation has claimed.

According to the British Bankers Association (BBA), many of the institutions operating from the UK have already acted to improve liquidity and strengthen balance sheets following the global credit crisis.

Angela Knight of the BBA, said that firms now believe that proposals to prevent future problems within the banking industry will impact the banks’ ability to lend and have a knock on effect upon business growth.

“Banks support the need for change but we are concerned that, in all the emotion around the international financial crisis, we are in danger of over-engineering stability - and making too many changes at a rush - at the expense of recovery and future growth in the wider economy."

Comments from the BBA followed the first visit of Michel Barnier, the new EU internal market commissioner, to the UK.

Ms Knight also welcomed comments from business secretary Lord Mandelson, who said that action to aid the recovery of the banking industry must be coordinated internationally.

By Jim Ottewill

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