Director calls for 'bread and butter' banking

Private banking services need to be retooled over the months to come, a financial expert has said.

Anna Sofat, director of ADDIDI Wealth, said that she wanted to see financial firms become more of a ’bread and butter business’ in the wake of the financial crisis and called for stronger regulations in the banking sector.

The development of irresponsible business plans prior to the onset of the credit crisis in 2007 have been blamed by many analysts for the huge losses sustained by many banks.

Northern Rock and Bradford & Bingley, two of the firms which relied the most on interbank lending rather than customer deposits for revenue, were both nationalised last year.

Meanwhile, the Lloyds group and RBS have both been given emergency government bailouts, with the latter bank losing a UK record £24 billion in 2008.

Anna Sofat, director of ADDIDI Wealth, said: ’The drive towards big profit is not going to change by itself.

’We need stronger legislation or rules from the government or the Financial Services Authority, to change the culture away from high profit. They need to say ’this is a bread and butter business’.’ADNFCR-2318-ID-19236165-ADNFCR