In the recent Independent Commission on Banking, blue prints have been drawn up that might, in the future, prevent the banks from making the risky investments that helped propel Britain into its current economic slump.
The concept of splitting high street banking from investment banking to protect the tax payer’s money has been the main focus for many. This would effectively make these two areas of banking separate, governed by two separate boards, and would theoretically make high street banking more secure.
But will it work? The Lincolnite visited the the Carlton Centre in Lincoln to ask people what they thought.
Lizzie Cooling, 27
“It seems a good idea. Obviously times are hard so if you have got any savings you don’t want them to get thrown away, especially if you have been saving money yourself then to lose it without you doing anything wrong. To be honest I don’t know that much about it and I don’t know how it would work, but you’d hope that if this is what they say is going to happen, then the banks should be a safer place to put your money.”
Karen Goodwin, The Gift Room (Carlton Centre)
“I think it may be a problem for small businesses. I think the banks are going to restrict the amount of lending they do. Anything slightly high risk is going to get an answer of no, bigger business will be ok to a degree but smaller businesses are going to suffer. We’re ok, we don’t need to borrow money at the moment but if we were in that situation I don’t think we would get an answer of yes. New businesses are going to have a real problem.”
Philip Davis, 20
“Something definitely needs doing about it. The banks are too greedy, especially with their bonuses; they still get bonuses when the rest of us are losing out. I lost loads of money myself in investments, and so did my parents. But if it will work, then I think it will be a good idea, anything to make banking safer.”
Matt Bollington, 26
“I really don’t know, you hope they know what they are doing. The banks need to make their money up so they can give us more but you don’t want a bank that needs to be bailed out by us. It’s a tricky one. But if it could work then I am definitely for it.”
Matt Edwards, 24
“Yeah I think it would be a good idea. I think something has got to change, because with the bank crisis people have lost money. I think that it helps to have two different markets it gives people a choice. Will it work? We will just have to see I guess.”