Skip to main content

Banks: Regulation

Volume 488: debated on Tuesday 24 February 2009

To ask the Chancellor of the Exchequer what recent assessment he has made of the effect of Government policy and banking practices on lending standards; and if he will make a statement. (252996)

Following consultation and legislation, the Government put in place statutory regulation of first charge mortgages in 2004. The Financial Services Authority has published the findings of a review of its rules at:

http://www.fsa.gov.uk/pages/Library/Communication/PR/2006/096.shtml

and

http://www.fsa.gov.uk/pages/Library/Communication/PR/2008/030.shtml

Other consumer credit business is regulated by the Office of Fair Trading under consumer credit legislation. The regime is strengthened by the 2006 Consumer Credit Act, which has been fully implemented as of October 2008. The Government are committed to review the changes to the framework of consumer protection introduced as a result of this Act after a period of three years.

As announced in the pre-Budget report, the Government have established a new Lending Panel, which will improve monitoring of lending to households and businesses.