08 July 2009
Saffron Building Society comments on Financial Services White Paper
Today's publication of the banking regulation White Paper reveals the government's plans to reform the Financial Services sector, in order to prevent future crises.
New proposal are likely to curb bank lending and clamp down on risks taken by financial firms. It will also move to encourage recapitalise banks with high risk exposure, in order to restore confidence in the banking system.
Saffron Chief Executive Andy Golding gave his reaction to the White Paper:
"With all that has happened in the financial services industry in the last year or so, it is vital that the government steps in to restore consumer confidence and ensure that their money is safe. Stability across the sector is central to the country's economic recovery.
"The focus of the Paper is on the highest risk providers and not those who operate low-risk models, such as building societies. The government wants large, complex banks to hold more capital as a protection against losses, which is ultimately promoting a simpler approach to banking - not lending out more than you take in. This principle is one at the heart of the building society model and something that has always been obvious to us at Saffron"
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