View more on these topics

Cable pledges it won’t be business as usual for banks

Business secretary Vince Cable has vowed to impose tough reforms on Britain’s biggest banks, stressing that there is “no way of going back to the status quo”.

Last weekend, in his first newspaper interview since being appointed business secretary, Cable told the Financial Times that the banks faced being broken up, tougher lending controls and curbs on bonuses.

He believes a key priority will be to force the banks to lend more to business. He said: “The banks are just not performing.”

He acknowledged this could affect the profitability of Government-backed banks Royal Bank of Scotland and Lloyds but said there would be concrete changes, even if Britain failed to secure international agreement.

He said: “We are not going back to business as usual. The sector is going to have to accept regulatory disciplines on the way it operates and there is going to be a restructuring.”

Before the election, Cable was a fierce critic of Tory plans to offer the public discounted shares in state-backed banks. At the time, he said it was likely to be around five years before RBS was back in private ownership.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com