Bank bosses have been urged to step up increases in interest rates for savers – after being summoned by regulators amid claims that they are ‘profiteering’.
Lenders are under fire for hiking rates for borrowers but only delivering meagre improvements to returns on savings accounts.
The Financial Conduct Authority (FCA) met nine chief executives at its HQ in east London. yesterday, saying banks need to ensure they are providing value for consumers.
Pressure: Lenders are under fire for hiking rates for borrowers but only delivering meagre improvements to returns on savings accounts
‘It’s not for me to set rates for banks,’ said Sheldon Mills, the FCA’s executive director for competition.
This week Jeremy Hunt backed more pressure to be put on banks to provide better savings rates.And the Commons Treasury select committee has slammed big banks over ‘measly’ rates.
A new ‘consumer duty’ is set to come into effect this month.
Mills said: ‘Through preparation for our new consumer duty, which requires the firms we regulate to put consumer interests at their heart, we have started to see some positive action by banks and building societies to improve rates, and to ensure customers are benefiting from better-value products. We now want to see that progress accelerate.
‘We continue to urge savers to shop around to make sure they’re getting the best deal.’
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