Bank break-up 'would make sector more competitive'

People in banking jobs would be operating in a more competitive sector if banks are broken up, a new survey has suggested.

Around 74 per cent of people think that splitting up the banks will create more competition, according to a poll carried out at the Which? Big Banking Debate.

Just under half of those questioned (47 per cent) thought that separating the retail and wholesale operations performed by financial institutions was the best way of improving the banking sector.

Peter Vicary-Smith, chief executive of Which?, said that it was important those in banking jobs listened to public opinion on how to improve the industry.

"It's wrong that, until now, the voice of the customer has been missing from the debate on how to bring much-needed reform to our banking system," he stated.

Earlier this month, Angus Tulloch, joint managing partner at First State Investments, suggested that people in banking jobs should have their own version of the Hippocratic oath in order to improve the way people in the sector behave, reported the Scotsman.

Updated: 08 February 2010.
Categories: banking-and-financial-services, market-and-industry-news.