Banking Reform

Guy Opperman Excerpts

Monday 4th February 2013 Commons Chamber

[Greg Clark]

The hon. Lady makes an excellent point. I should like very much to see banks in our great regional cities, as used to be the case: banks that can take deposits from local people and, knowing what local investment opportunities they have in the area, can establish a connection. So far it has been very difficult for new banks to obtain banking licences within a reasonable period, and to satisfy the regulatory requirements. We are doing all that we can to lower the barriers to entry, so that we can achieve exactly what the hon. Lady has described.

[Guy Opperman (Hexham) (Con)]

I welcome the proposal, as well as the fact that we are taking on the bully banks on interest rate swaps and clearing up the big banks, which have had grave deficiencies for a considerable time. Does the Minister agree that the Bill will also make it easier to create the local, regional banks that we need to provide the competition, access to finance and community trust we are trying to establish in places such as the north-east, where we are proposing a bank for that region?

[Greg Clark]

My hon. Friend is right about that, and it may interest the hon. Member for Kingston upon Hull North (Diana Johnson) to know of the example that he and I were discussing in Newcastle recently. We were looking at ways in which we can make it possible for there to be a north-eastern or Tyneside bank that can specialise in the north-eastern economy.