UK banks 'not a safe investment'

24 November 2011

British banks are not currently seen as a safe investment option due to the ongoing uncertainty surrounding the country's economic future.

That is according to Stephen Hester, chief executive of the Royal Bank of Scotland, who has admitted the financial sector does not represent an attractive proposition for traders at the moment.

Speaking at the Treasury Select Committee, Mr Hester told policymakers that this trend looks set to continue in the near future.

"I would be interested to see the investor who wants to put more capital towards UK banks at the moment. They are thinking it is a dumb place to put more capital," he noted.

Recently, Bank of England official Robert Jenkins called on banks to stop lobbying so vehemently against regulatory changes and focus on raising more capital.

However, Mr Hester labelled these comments "surprising" and indicated this is easier said than done in the current economic climate.

By Asim Shah

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