Transforming Finance conference calls for greater diversity in UK banking sector

IN: Business news

Britain's financial sector must become more diverse if it is to foster a healthy UK economy, according to financial experts at Friends of the Earth's Transforming Finance conference, held in London last week.

The conference, which discussed the future of the banking sector in the United Kingdom, highlighted a number of issues facing SMEs in the country. Indeed, delegates at the event took to Twitter to argue that the British banking system was failing to deliver credit to small businesses.

Speaking at the event, Professor of International Banking, Richard Werner stated that only 22 per cent of UK bank credit in the last decade was invested in the real economy.  Meanwhile, Professor Stephany Griffith-Jones of Columbia University argued that the United Kingdom needed a 'financial system that is smaller, simpler and less opaque.'

Speakers at the event also drew attention to the value of regional banks currently operational in Europe; a similar scheme was proposed for the UK by Ed Miliband earlier this year.

Speaking at the British Chambers of Commerce Conference in March, Ed Miliband said:

"We need a regional banking system; Not banks that are likely to say no but banks that know your region and your business; banks you can come to trust."

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