Banks, bad attitudes and bad behaviour
Criticism of banks by the outgoing chief executive of the FSA coincided with Capgemini’s report on global banking.
“A significant regulatory shift in some markets will even make it easier for customers to switch from one bank to another via a shared account database and account portability between banks (however the massive inertia may still mean this is not a watershed moment, more of an erosion).”
In the final analysis, there is also a need for regulatory supervision of the various vehicles used by banks to raise capital, such as asset-backed securities.
Often the new owners of the mortgage books can become more aggressive and impatient with borrowers who default for only a few weeks, a situation that should be treated as intolerable.
Borrowers in default should be treated with the same courtesy as those who meet their monthly obligations on time.
Misfortune, such as losing a job, can befall anyone at anytime, the only difference being the gap between those with funds for a rainy day and those without.
Now that the regulator is focusing on the level of corporate governance in retail banks, we can be assured of some action in the near future.
Hal Austin is editor of Financial Adviser