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Highlights
- FCA has proposed new rules to push banks and building societies to better understand the impact of their decisions on vulnerable people.
- The city regulator has warned that certain branches have been reducing their services, like decreasing the branch opening times, without considering its full impact on customers.
Under the new proposals of the Financial Conduct Authority (FCA), banks and building societies will have to increase their efforts to look at how the reductions to their services, like decreasing the branch opening times, are impacting the customers.
© 2022 Kalkine Media®
The city regulator has cautioned that several banks and building societies have been making changes to the services they offer without keeping their customers informed regarding the same. The proposals include the extension of communications regarding the impact of the altered services to other groups too, which include councils and local charities.
According to FCA’s 2020 financial lives survey, a branch is used by 27% of the adults having a day-to-day account. However, over the last one year, the branch used by one in every six people has been shut down. Following temporary changes during the pandemic, companies have lately been permanently cutting down the opening hours and offering services, as per the FCA.
As partial closures of branches also significantly impact the customers, the FCA has proposed to deal with the partial and full closures in the same manner by extending its guidance. The new rules would thus push the branches to better understand the impact of their decisions on the vulnerable people. By 26 July, the FCA is expecting responses to its proposals.
© 2022 Kalkine Media®
But as the new rules are set to come into force, investors can perhaps look at these 3 top FTSE100-listed banks to invest in. Let’s look at the share price performance of these leading companies.
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HSBC Holdings Plc (LON: HSBA)
HSBC Holdings plc’s shares closed at GBX 520.40 on 14 June 2022. The FTSE 100 bank has provided its shareholders with a return of 18.71% over the last one year as of 14 June 2022. The bank’s market cap stands at £101,010.33 million as of 14 June and it is currently offering a dividend yield of 4.2% a year.
NatWest Group plc (LON: NWG)
NatWest Group plc’s shares closed at GBX 221.40 on 14 June 2022. The FTSE 100 bank has provided its shareholders with a return of 8.35% over the last one year as of 14 June 2022. The bank’s market cap stands at £22,963.72 million as of 14 June and it is currently offering a dividend yield of 4.8% a year.
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Lloyds Banking Group Plc (LON: LLOY)
Lloyds Banking Group Plc’s shares closed at GBX 43.37 on 14 June 2022. The performance of the FTSE 100 bank has deteriorated over the last one year and its one-year return stands at -9.92% as of 14 June 2022. The bank’s market cap stands at £29,795.69 million and it is currently offering a dividend yield of 4.7%.