Just how many banks do we need?

Creating more banks is not necessarily the answer.

According to Greg Clark, financial secretary to the Treasury, the current number of banks in the UK is unacceptable. Says Clark: “we need more banks.” The co-founder of Metro Bank, Anthony Thomson, is singing from the same song sheet. Speaking at a conference last week, Thomson forecast that we will see between five and 15 new banks over the next three to five years. Let’s get real. There are immense barriers to setting up a new bank – as indeed there should be. If we witness two or three new banks over the next three years up and running, that would be a result.

Love them or loathe them, Tesco is one of the world’s most successful retailers, if you forgive it their disastrous foray into the US and the millions lost on its Fresh & Easy project. Even Tesco has found the launch of a current account product in the UK a major challenge. For the past year or more, Tesco has been working on rolling out a current account. We are still waiting to see what the Tesco Bank current account will look like. And this from a banking unit with deep pockets and led by Benny Higgins, arguably one of the leading retail bankers of his generation.

There are currently 17 separate providers of current accounts in the UK. The Tesco Bank launch, slated for the third quarter, will take us to 18. Additional competition is also coming from Bank of Ireland; it is to run three current accounts on behalf of The Post Office. The Post Office is currently trialing its new current account products across 29 branches across Essex and East Anglia ahead of a nationwide launch.

Within government, there seems to be a belief that making it easier for new banks to launch will somehow improve standards as a result of an increase in competition. What the country certainly could with is more responsible banks….an increase in innovation, perhaps. More transparent pricing would help for a start.

If the banks are really to serve the economy, the government has no option but to ensure that they are well -capitalised banks: by its nature, the need to be well capitalised will make it more difficult for new entrants to launch. The argument that we simply need more banks seems to this writer to be not proven.

 

Douglas Blakey is the editor of Retail Banker International

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Xenophobic graffiti at a London Polish centre is a dark sign of post-Brexit Britain

The centre's chairwoman says an incident of this kind has never happened before, and police are treating it as a hate crime. 

Early on Sunday morning, staff arriving at the Polish Social and Cultural (POSK) centre in west London's leafy Ravenscourt Park were met with a nasty shock: a xenophobic obscenity smeared across the front of the building in bright yellow paint. 

“It was a standard, unpleasant way of saying ‘go away’ – I'll leave that to your interpretation,” Joanna Mludzinska, chairwoman of the centre, says the next morning as news crews buzz around the centre’s foyer. The message was cleaned off as soon as the staff took photo evidence – “we didn’t want people to walk down and be confronted by it” – but the sting of an unprecedented attack on the centre hasn’t abated.

“Nothing like this has ever happened before,” Mludzinska tells me, shaking her head. “Never.”

The news comes as part of a wash of social media posts and police reports of xenophobic and racist attacks since Friday’s referendum result. It’s of course difficult to pin down the motivation for specific acts, but many of these reports feature Brits telling others to “leave” or “get out” – which strongly implies that they are linked to the public's decision on Friday to leave the European Union. 

Hammersmith and Fulham, the voting area where the centre is based, voted by a 40-point margin to remain in the UK, which meant the attack was particularly unexpected. “The police are treating this as a one-off, which we hope it is,” Mludzinska tells me. They are currently investigating the incident as a hate crime. 

“But we have anecdotal evidence of more personal things happening outside London. They’ve received messages calling them vermin, scum [in Huntingdon, Cambridgeshire]. It’s very frightening.” As one local Polish woman told the Mirror, there are fears that the referendum has “let an evil genie out of a bottle”. 

For those unsure whether they will even be able to stay in Britain post-referendum, the attacks are particularly distressing, as they imply that the decision to leave was, in part, motivated by hatred of non-British citizens. 

Ironically, it is looking more and more likely that we might preserve free movement within the EU even if we leave it; Brexit campaigners including Boris Johnson are now claiming immigration and anti-European feeling were not a central part of the campaign. For those perpetrating the attacks, though, it's obvious that they were: “Clearly, these kind of people think all the foreigners should go tomorrow, end of,” Mludzinska says.

She believes politicians must make clear quickly that Europeans and other groups are welcome in the UK: “We need reassurance to the EU communities that they’re not going to be thrown out and they are welcome. That’s certainly my message to the Polish community – don’t feel that all English people are against you, it’s not the case.” 

When I note that the attack must have been very depressing, Mludzinska corrects me, gesturing at the vases of flowers dotted around the foyer: “It’s depressing, but also heartening. We’ve received lots and lots of messages and flowers from English people who are not afraid to say I’m sorry, I apologise that people are saying things like that. It’s a very British, very wonderful thing.”

Beyond Hammersmith

Labour MP Jess Phillips has submitted a parliamentary question on how many racist and xenophobic attacks took place this weekend, compared to the weekends preceding the result. Until this is answered, though, we only have anecdotal evidence of the rise of hate crime over the past few days. From social media and police reports, it seems clear that the abuse has been directed at Europeans and other minorities alike. 

Twitter users are sending out reports of incidents like those listed below under the hashtag #PostBrexitRacism:

Facebook users have also collated reports in an album titled Worrying Signs:

Police are currently investigating mutiple hate crime reports. If you see or experience anything like this yourself, you should report it to police (including the British Transport Police, who have a direct text number to report abuse, 61016) or the charity Stop Hate UK.

HOPE not hate, an advocacy group that campaigns against racism in elections, has released a statement on the upsurge of hatred” post-referendum, calling on the government to give reassurance to these communities and on police to bring the full force of the law” to bear against perpetrators.

The group notes that the referendum, cannot be a green light for racism and xenophobic attacks. Such an outpouring of hate is both despicable and wrong.

Barbara Speed is a technology and digital culture writer at the New Statesman and a staff writer at CityMetric.