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Time to shake up those banks.

A Government backed commission has today announced that UK Banks should try and protect themselves from high risk investment banking arms. The Independent Commission on  Banking said that if banks do this now it will make any situations that arise a lot easier to resolve and less costly.

The report has answered many questions about whether we as a country can be home to banks which compete with other financial institutions around the world and still lend and provide services to British people and businesses but similarly protect us as taxpayers if anything goes wrong.

Another idea is for banks to have a contingency plan if thinks go wrong, a loss absorbing capacity of around 17-20%. The ICB report also mentions that the government should be stronger and insure Lloyd’s Bank’s planned sale of 632 branches provides a competitive financial market.

It also provides plans about making it easier as consumers to change bank accounts, especially with all the fancy promises of free money to switch banks.

Hopefully by September 2013 there will be a system in place which makes it easy and free to change accounts and they are automated to deal with a persons financial history and current financial status.

This will be the biggest shake up and re organisation of British Banking ever. Banks may not particularly want to go along with this but unfortunately its no longer about them and their profit, its about the customer and providing a better service.

After years of economic unrest the ICB was set up last year to study how taxpayers could be protected by future financial meltdowns. After All it is the tax payer who ends up paying for the mistakes and the debt of the country.

We as consumers still tend to use banks as safe places to house our money, is there a better option? What was wrong with stuffing it into our mattresses?

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