UK lawmakers have put further pressure on the country’s largest banks for offering stingy saving rates to customers despite soaring interest rates.
(Bloomberg) — UK lawmakers have put further pressure on the country’s largest banks for offering stingy saving rates to customers despite soaring interest rates.
In a series of letters published on Wednesday, MPs on the Treasury Select Committee questioned Barclays Plc, HSBC Holdings Plc, Lloyds Banking Group Plc and NatWest Group Plc on offers of less than 1% interest on easy access savings accounts when the Bank of England’s rate now stands at 4%.
Major UK banks reported growing net interest margins in their fourth-quarter earnings last month. Lenders also increased pay for executives and announced a total of £4 billion in share buybacks.
“It is difficult to avoid the conclusion that our biggest banks are taking advantage of their most loyal customers to increase profits and CEO pay,” said Harriett Baldwin, who chairs the committee. “The most powerful tool consumers have is to take their money elsewhere. But the banks also have a responsibility here. They need to step up and offer our constituents reasonable savings rates.”
The letters come weeks after CEOs appeared at the committee to defend their savings offers.
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