Free banking 'myth' must end, says PRA chief-in-waiting

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The notion of free banking is a "myth" that may ultimately encourage the mis-selling of financial products, Bank of England executive director Andrew Bailey has said.

Bailey, the favourite to be named chief executive of the Prudential Regulatory Authority, said too many consumers pay for banking services in a way that is difficult to link back to the products they have been sold. This can also leave banks unclear as to the costs of their products and services, he said. "Reform of retail banking in this country cannot move ahead unless we tackle the issue of free in-credit banking, and have a much better sense of what we are paying for and how we are paying," Bailey told the Westminster Business Forum. "[Free banking] is a myth because nothing in...

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