Banking Reform

David Morris Excerpts

Monday 29th November 2010 Commons Chamber

[David Morris (Morecambe and Lunesdale) (Con)]

I am going to make only a two-minute speech, Mr Deputy Speaker.

This debate has touched a lot on the technicalities of how the banking system works, but I echo the passionate and eloquent speech by the hon. Member for Islwyn (Chris Evans). Commercial banks on the high street do not all operate between themselves in the same way. There are different clearance rates. Cheques can take up to 10 days to clear, which can put families who are in hardship even further into hardship. In the banks’ eyes, banker’s transfers do not occur on the same day, or even over four days. For example, one of our high street banks—one that is more or less state-owned—will take money out of a person’s account instantaneously, but it will take over four days to transfer that money into another account in the same branch. I have a constituent who has a problem in that he paid off his credit card over the counter in a national high street bank, but was told that it would not be credited instantly and that this would take up to six working days. That is outrageous and should be touched on in the reforms, so that each bank is streamlined with the others. In many countries in Europe, such as Sweden, transfers are seamless and instantaneous. I would like the House to consider that.