Clearing Banks (Deposit or Savings Accounts)

HC Deb 15 June 1971 vol 819 cc223-4

23. Dr. Gilbert

asked the Chancellor of the Exchequer if the clearing banks are now free to compete for deposit or savings accounts.

Mr. Maurice Macmillan

The new proposals recently put forward by the Bank of England are designed to replace the ceilings on bank lending that have discouraged competition in the past by more flexible methods of control, and it is part of these proposals that the clearing banks' collective agreements on interest rates should be ended.

Dr. Gilbert

The hon. Gentleman has not answered the Question. Will he tell us whether the clearing banks will be free to compete for deposit or savings accounts? Does he accept that any failure to allow them to do so will be a serious flaw in what is otherwise an excellent document which has come from the Bank of England? Can he give us any idea when the Bank of England's proposals are likely to take effect?

Mr. Macmillan

The cartel is likely to be ended when the new proposals have been discussed and brought into action. The banks will then be completely free to compete.