If the banking system returns to its previous methods of operation the recession has taught Britain nothing, one expert has suggested.
UK Financial Investments Limited (UKFI), which has been tasked with managing the government’s stakes in Royal Bank of Scotland and Lloyds, has released a report outlining its intention to return the financial institutions to private ownership.
Director of charity FairBanking Antony Elliott said this could result in the “unfortunate” situation where the UK experiences “a crisis for nothing”.
He remarked: “It would be good if UKFI played a part in bringing about some cultural change in the banking sector rather than simply getting back the taxpayers’ money.”
According to the strategy published on July 13th by UKFI, it will operate the shares on a commercial basis, without interfering with how banks are run.
John Kingman, chief executive at UKFI, commented that taxpayers’ money would be returned in the process and the organisation would continue to be involved in strategic decision-making.
By Francis Finch