Belfast Telegraph

UK's faith in banks is 'further dented over Libor'

By Jamie Grierson

The banking sector is the industry most in need of greater regulation, according to a global consumer survey published in the wake of the rate-rigging affair.

The 24-country study by market research company Ipsos MORI found that some 37% of consumers believe that the banking sector has "too little" regulation.

The insurance sector was next on the list, with 35% saying it has too little regulation, followed by packaged food at 33%, while at the other end of the scale was the electronics industry, with 18% saying there is too much regulation.

Britain and the rest of Europe were singled out as countries where these views on banking regulation are most prominent.

Almost seven in 10 British consumers, 68%, said that there is too little regulation, a score closely followed by four other European countries, Spain, France, Belgium and Germany.

The impact of the continuing problems in the European banking sector and problems in recent weeks for banks in Britain, particularly the Libor-fixing scandal at Barclays, have influenced consumers' views on banking.

Half of global citizens said that "operating transparently" is one of the most important issues for the financial services industry to address. This is followed by creating and maintaining local jobs and financial strength.

Milorad Ajder, Managing Director of Ipsos MORI Reputation Centre, said: "The trust and favourability scores that the payment companies have received are more typical of consumer product companies, than of financial institutions."