Truly Independent Directors Required

Financial Services will undergo radical change over the next few years. 

Change is being forced on Banks. 
 
It is no longer considered acceptable or prudent for banks to try to make profits from high risk lending or derivative activity.

Going forward, UK banks will need to be able to make profits from "normal" retail activities.
 
We are are already seeing the impact of the new climate.
 
For example, interest rates paid by banks on deposits are very low, typically under 2%. 
 

Compare the interest rates paid to those charged, for loans or on credit card balances, and you will see how the banks are trying to make their profits.

Never is a very long time, but never is the likely timeline if one is considering when savers might again enjoy decent interest rates.

So banking is changing - and so are the supervisory structures that seek to protect the UK Public and Economy from the potential excesses of the banking sector.

However - and it is a gigantic however - there is little evidence so far that the independent Directors selected to sit on the new supervisory bodies will be truly independent. 

We cannot have the mistakes of the past repeated.

Too often, independent Chairmen and Directors appointed have been chosen not to rock the banking "boat" or rattle the Golden vaults of the City.
 
Well, the old boat almost sunk, with the UK Public's financial lifebelt required to keep it afloat.
 
Now, we need real livewires running the new Supervisory Bodies, prepared to fall-out  where necessary with the pompous fat-cats who have had their own way for far too long.

I will be looking out with keen interest for the new "names".
 
Rest assured, if they are inadequates, you will read the sorry tale here first!

Friday, 3rd May 2013

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