Britain’s most senior retail banking regulator do not believe we have seen the last of financial service providers behaving badly.
Jonathan Davidson is the director of supervision for retail and authorizations at the Financial Conduct Authority (FCA), the UK financial watchdog.
He told the Financial Times that even though lenders have set up payment protection insurance compensation after a huge national mis-selling scandal, bad behaviours could return if the going gets tough.
Davidson argued that banks were more likely to take bigger risks during financial downturns. That could include both credit and conduct risks.
The comments comes as the country has drawn a line under so called PPI mis-selling scandal, which saw bankers sell insurance that they were either ineligible for or unaware of that they were buying.
Up until Thursday August 29, people who believed they had been mis-sold PPI could complain to the FCA to claim back money.
In June, the grand total of money paid back since 2011 reached £36bn, according to the FCA.
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