Opposition leader Ed Miliband will argue that a new regional network of banks is the answer to reinvigorating the banking sector and rebuilding the nation’s trust.
A week before next Wednesday’s budget is announced by the treasury, Miliband plans to call for further reforms of the finance sector, including a British Investment Bank as well as regional banks based on the German Sparkassen model.
The banks would promote local growth by lending to small businesses in the local area. Labour contend that such banks are more robust in a recession because their strategies are lower risk.
Miliband attacked the bonus culture of the City, saying: ‘We need banks that serve our businesses, not businesses that serve our banks.’
‘We need to build new institutions out of the rubble of the old with radical new approaches to banking, skills, the British firm and infrastructure, underpinned by confidence and clarity about our place in the world.’
Find out more about the changes taking place in banking.