Banks too slow to pay out in mis-selling claims - UK Minister

LONDON, July 25 (Reuters) - British banks are acting tooslowly to pay compensation to firms that were mis-sold financialproducts, Business Secretary Vince Cable said on Thursday,calling for swifter payouts and greater transparency.

Banks such as Barclays, HSBC, RBS and Lloyds have been setting aside hundreds of millionsof pounds after regulators found they had been widelymis-selling complex interest rate hedging products to smallbusinesses.

However, at a meeting with Financial Conduct Authority chiefMartin Wheatley on Wednesday, Cable said banks should handleclaims faster to help relieve pressure on struggling businesses.

"I am frustrated at the lack of progress on the mis-sellingof interest rates swaps," Cable said. "I meet many smallbusinesses as I travel round the country who have been afflictedby this scandal and those who deserve compensation should not beleft waiting any longer."

The FCA agreed to publish regular updates on claims - datawhich Cable said could be used to hold banks to account. The FCAwatchdog was created in April, marking the end of a 'lighttouch' regulation system that failed to prevent a financialcrisis and several mis-selling scandals.