“Banking Futures” surveyed 200 industry leaders, investors and customers, all of which had identified tensions by the dozens, believe that banks could not fail even with all the regulatory violations committed by the institutions.
However, a lack of competition in the high street had given a few UK banks free reign to dominate the creation products, which were highly likely to create short term growth for the banks, but not for the real economy.
According to responses from the Financial Conduct Authority, the Citizen’s Advice Bureau and Baroness Shriti Vadera of Santander, they recommended banks can serve the real economy by making business decisions to grow the UK economy.
Most of the recommendations highlight centring customers during decision making.
“The financial crisis was a painful reminder that commercial banks should operate for the good of the public, their customers. Now we must tackle the question of what banking system we do want,” according to Deputy Governor for Prudential Regulation Andrew Bailey. “Banking Futures is an important initiative involving a wide group of stakeholders. It has a call to leadership, to respect customers and to support our economy.”
BoE’s annual stress tests may or may not see British Banks having enough capital coping up with future shocks. Banks had barely made profit increases during the year. Most of their profits came from minimal decisions that affected the real economy of the country.