Bank bosses to explain poor interest rate rises for savers as firms across East of England squeezed
Small businesses in the East have been badly affected by rising mortgage rates
Last updated 6th Jul 2023
Big bank bosses are being summoned to a meeting with the Financial Conduct Authority today (Thursday 6th) over claims they're profiteering from interest rates.
Chief executives at HSBC, NatWest, Lloyds and Barclays will have to explain themselves to the F-C-A - they're accused of giving 'measly' interest to savers.
Higher interest rates have led banks to put up mortgage costs sharply, but savings rates are not rising as fast.
Candy Richards, from the Federation of Small Business in the East, says rising interest rates "spell danger for our high street".
Small businesses in particular are thought to be at risk.
Candy says: "They don't have lots of cash in the bank and they're seeing overheads rise month by month.
"When you add in rising interest rates to the mix, you can straight away see this spells danger for our high street and many loved small businesses.
"What we really need to see is the banks coming forward and supporting small business.
"They need to be bringing forward much more flexibility in terms of repayments.
She also says energy companies need to "renegotiate" contracts to allow small businesses to take advantage of falling energy costs.