Banks' unpopularity exposed by new poll

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Trust in banks is declining as credit crunch-related bad news continues to hit the headlines.

Just over a third 37 per cent of people believe that banks "can't be trusted" to act in the best interests of the economy as a whole, a Which? poll revealed today.

The survey also showed that 38 per cent believe that banks would not offer them the best return on their money - while 21 per cent said that they did not trust them to keep their savings safe.

Banks have been thrown into crisis over recent months due to the global credit crunch, which has stymied lending and driven the UK into recession.

Big City bonuses and risky corporate cultures at financial firms have been blamed by some analysts for helping to bring about the crisis in the first place.

The Which? poll also found that 88 per cent of people feel that "financial institutions have encouraged excessive borrowing" - and that a similar number agree that "banks should make better checks that people can afford to repay loans before they agree them".

Which? personal finance campaigner Doug Taylor said: "The sword of Damocles is hanging over the banking sector.

"Surely with such a ground swell of public feeling, it's time that the banks, government and regulators sat up and took note? People are angry and they need answers, fast."

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2009-02-17 13:02:42 © Moneyextra.com