Future of free banking under threat - Banking - News | moneyfacts.co.uk


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Future of free banking under threat

Future of free banking under threat

Category: Banking

Updated: 12/01/2018
First Published: 25/07/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The chairman of the Financial Services Authority (FSA) has called for an end to free banking, saying it represented a 'flawed system'.

Speaking in London, Lord Turner said that the regulator wanted an end to the practice in the UK, one of a small number of nations who operate free banking.

Lord Turner, "We need to recognise a central problem in UK retail banking, the impact on competition of free-if-in-credit banking.

"One important barrier to competitive entry into UK personal sector banking is obvious, the fact that the core product, the current account, is usually given away for free, sold at below cost of production.

"It is not a sound basis for a long-term trust-based relationship between a competitive banking system and its customers."

Compare bank accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.