LONDON, June 30 (Reuters) - Fines are failing to curbmisconduct at banks or prompt customers to switch lenders, a topBritish consumer organisation said on Tuesday.
Britain's Financial Conduct Authority (FCA) has ratcheted upfines to record levels in a bid to deter wrongdoing after bankswere caught trying to rig currency markets and the Liborinterest rate benchmark.
"Do they actually change behaviour? I don't think there ismuch evidence of that," Sue Lewis, chair of Britain's FinancialServices Consumer Panel, told a CityUK conference.
"Do they work in the sense of hurting companies and to makethem want to change their behaviour? I think the jury is stillout and the answer is probably not," Lewis said.
The share price of one bank, Barclays, actuallyrose after it was fined recently for attempting to manipulateforeign exchange markets, she said.
Consumers were not switching banks in large numbers aftersuch fines because they can't differentiate between lenders onbehaviour.
"People think that all banks are the same, that they are allequally bad," said Lewis, whose panel formally advises the FCAon consumer issues.
David Nish, chief executive of Standard Life Investments,said the key was to change behaviour and to design betterproducts for customers, not just focus on fines.
"You have got to have to think of a balance between thecarrot and the stick," Nish said. (Reporting by Huw Jones; Editing by Mark Potter)
Barclays (BARC)
