The Government’s stakes in Northern Rock, Royal Bank of Scotland and Lloyds, should only be sold to those institutions that “can best deliver against a range of specified criteria,” Mr Richardson told the Future of Banking Commission hearing in London last week.
Said Mr Richardson: “The short, medium and long-term interests of the public will be best served by a business which can deliver sustainable returns whilst championing other core credentials including customer advocacy, social accountability, colleague engagement and financial inclusion. Being measured against such a balanced scorecard doesn’t deter commercial success, it supports it, enables it to flourish and be sustained.”
The Future of Banking Commission — organised by Which? — allowed the public to discuss the state of financial services with politicians and to give opinions on what the Government should do with its shares in institutions — including sell-offs to other banks.
Due to the conditions of state aid, both Lloyds and RBS have been ordered by the European Commission to sell around 900 branches between them.
In the News last August, Mr Richardson hinted that CFS is looking to expand its branch network in Scotland following the merger with Britannia Building Society — where both have a weak presence.
However, a spokesman for CFS said it was not on the agenda to make any large acquisitions over the next three years, while the integration process with Britannia is continuing. Though if the Government still holds a stake after that, then CFS will consider its options to move forward “organically or through acquisition”.
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