Legal and General Chief Executive Nigel Wilson purported that UK banks will want to move out of the United Kingdom as the country continues to squeeze against it for its faults on mis selling payment protection insurance and committing several financial scandals that led to a string of fines and public scrutiny. Indeed, it is materialising, and the government is powerless to stop it.
The ‘Access to Banking Protocol’ will enable lenders to close the last branch of their bank in any UK area as long as they give at least a 12 weeks’ notice and they publish a public assessment of the likely impact on its customer base
According to UK Finance Minister and BoE Chancellor George Osborne’s 2015 Budget, banks can no longer deduct their PPI compensation amounts against their taxes. This move enables the UK to gain at least £5.6 billion in tax revenues. Banks have used taxes to reduce the impact of payment protection insurance repayments.
Osborne had also increased the UK bank levies from 0.156% to 0.2%. The drastic change, according to Wilson, could push out the banks. Coupled with the increasing public scrutiny against banks pushing the FCA to implement against Senior Banking Officials a “guilty until proven innocent” burden of proof system, UK banks and private institutions would be forced to keep their cash reserves to themselves.