Corporate banking sector 'should have more competition'

Corporate banking groups should be subject to greater competition, governor of the Bank of England Mervyn King has stated.

He suggests more corporate and private banks should join the market in order to offer Britons "a wide range of options", adding mutual organisations are also important for diversifying the offerings of financial service providers,

And corporate fiduciary may have an important role to play, as the executive notes many building societies prospered during the economic crisis because people felt they were more trustworthy.

A report by the Future of Banking Commission detailed 39 areas in which large financial groups could improve, claiming "living wills" - setting out the ways in which such firms would be managed in the event of a collapse - should be introduced.

It also noted payment systems in corporate banks and others would benefit from restructuring, with employees rewarded for long-term performance and client care, rather than short-sighted profiteering. ADNFCR-2318-ID-800072025-ADNFCR