Darling promises more bank competition
Updated on 01 November 2009
Chancellor Alistair Darling tells Channel 4 News that his plans to break up and sell off the banks bailed out by the government should increase competition and encourage spending.
He told Krishnan Guru-Murthy how he believes his plans will increase competition, cut the cost of borrowing and encourage more spending.
Darling said: "I think it is a problem that we don't have enough competition on the high street.
"A couple of years ago we had many, many different providers of mortgages, loans to businesses and so on. Essentially you've got six big lenders now and what I want to do is build on the stabilisation that we put in place a year ago to build a safer and more competitive banking system.
"It will need some reform and reconstruction but it will mean that we get more providers and if you get more banks then that will drive down the cost of borrowing, it will provide more credit and I think it will be far better for us all round."
