CML: breakup of banks won’t lead to more lending
MORTGAGE lenders have warned that the government’s banks breakup will fail to stimulate lending and even predict “stagnation” in the housing market next year.
The Council of Mortgage Lenders (CML) poured cold water on hopes that the carve up of RBS and Lloyds and the resurrection of brands like Williams & Glyn’s and Trustee Savings Bank, as well as the sale of Northern Rock, would re-ignite fierce competition.
“Too often, the government has failed to acknowledge the constraints under which lenders are operating – and the often conflicting demands that are being made of them,” the CML said. “But we expect the pent-up demand that exists in the market to help ensure that mortgage lending commitments are met.”
The CML reminded Alistair Darling that his goal in splitting the nationalised banks was to “increase diversity and competition” in banking.