Public ‘have lost trust in banks’

Members of the public have lost faith in the UK’s banks, research from a consumer body has discovered.

A study carried out by Which? found that 37 per cent of those questioned do not feel banks can be trusted to act in the best interests of the economy.

And 21 per cent stated they do not have confidence that the financial institutions can keep their money safe.

In addition, 88 per cent said that lenders have encouraged excessive borrowing and 29 per cent do not believe they will be sympathetic to them if they need debt help.

Better checks by banks to ensure that people can repay loans before approving them were called for by 87 per cent of the participants in the survey.

“The message is loud and clear – people think the banking system needs to be reformed,” commented personal finance campaigner Doug Taylor.

Meanwhile, the Royal Bank of Scotland has moved to slash bonuses for its workers by 90 per cent following pressure from the public and government ministers.

By Jamie Price