Reforming Financial Markets consultation response
Urban Forum has posted a response to the Treasury's Reforming Financial Markets White Papeer consultation. In it we make a number of recommendations including:
1. The Bank of England should be given a statutory duty to ensure fairness in the financial markets.
2. Banks should be required to publish information to demonstrate they are serving the needs of all communities, without discrimination.
3. A standard model of presenting information on financial products should be introduced to protect consumer interests and enable more informed decision making.
4. A responsible credit cap should be introduced to fix an upper legal limit for the amount of interest that can be charged for a loan.
5. Legislation based on the US Community Reinvestment Act should be introduced in the UK.
6. Public funds should be invested to support the development of community finance infrastructure.
7. Banks should be required to re-invest at least 1% of pre-tax profits in grants to support activity of public benefit.