Banks are far from being humbled

THERE has been a growing suspicion for some time that, despite being saved from going out of business through their own reckless behaviour, it has not been a humbling experience for the banks.

Far from it, sad to say. Many observers predicted that the banks would slip back into their old ways as soon as they thought the coast was clear.

We have seen the sorry saga of bank bonuses continue to rear its head, despite the public anger it causes, even although staggering amounts were pumped into the banking system to save it from itself. The bonus culture was one of the reasons cited for creating the credit crunch and subsequent recession.

Now the powerful and influential Commons Scottish affairs committee has criticised banks for aggressively targeting people who have fallen into financial hardship and are struggling to repay their debts. They are also accused of unsympathetic practices when dealing with customers. The findings were echoed by the Federation of Small Businesses in Scotland, which attacked banks over their relationship with smaller commercial customers.

There is a bitter irony here, of course, as some major banks were falling over themselves to grab taxpayers’ cash to stay in business despite helping to create the financial disaster.

People assumed the winds of change would sweep through every aspect of banking practice, but it does not look like it as far as many customers are concerned and they are bewildered why the government, which manages the public’s investment, seems unwilling to do anything about it.