Banks urged to step up help for savers at FCA meeting
Banks urged FCA meeting to ramp up aid for depositors amid claims they are ‘profiting’
Bank bosses have been urged to hike interest rates for depositors – after being summoned by regulators amid claims they are “profiting.”
Lenders are under fire for rising borrower rates, but are delivering only meager improvements to savings account returns.
The Financial Conduct Authority (FCA) met with nine CEOs at its East London headquarters. yesterday, saying banks need to make sure they provide value to consumers.
Pressure: Lenders under fire for rising borrower rates, but delivering only meager improvements to savings account returns
“It’s not for me to set rates for banks,” said Sheldon Mills, the FCA’s executive director for competition.
This week, Jeremy Hunt backed more pressure on banks to offer better savings rates. And the Commons Treasury Select Committee has criticized big banks for “skinny” interest rates.
A new ‘consumer levy’ will come into effect this month.
Mills said: “As we prepare for our new consumer duty, which requires the companies we regulate to put consumer interests first, we are seeing some positive action from banks and building societies to improve rates and ensure customers benefit from better value products. We now want to accelerate that progress.
“We continue to encourage savers to shop around to make sure they get the best deal.”