The various bodies charged with the responsibility of overseeing the banking process in the UK appear to be failing consumers, it has been claimed.
With millions of people around the country struggling to become debt free, David Kuo, head of personal finance at Fool.co.uk, has suggested that consumer confidence in the way banks are regulated is diminishing.
Many people feel that the Bank of England, the Financial Services Authority and the Treasury lack the capacity to regulate banks effectively since the problems with Northern Rock hit the headlines in recent months, Mr Kuo has insisted.
“It was vitally important that the government brought the Northern Rock fiasco to an end to prevent further damaging of consumer confidence in banks,” he said.
Mr Kuo went on to point out that research by Fool.co.uk found recently that one in five people have lost a degree of confidence in the UK’s banking groups since the problems with Northern Rock began.
Official figures released last week showed that record numbers of UK consumers entered voluntary bankruptcy as a solution to their debt management problems.