Bank Clearing System Is Set for a Pre-Election Overhaul

Sunday HeraldMarch 14, 2005

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Summary


THE writing will be on the wall for Scotland's three-day bank clearing system when the Office of Fair Trading (OFT) publishes a report next month calling for a significant speeding up of the process. The banks expect to be able to move to same-day settlement within two years.

Many customers are infuriated by the existing bank clearing arrangements - where it can typically take three days to complete a transaction - particularly since the OFT revealed that institutions make pounds-30 million profit by sitting on the cash.

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Extract


Bank Clearing System Is Set for a Pre-Election Overhaul

The Treasury asked Donald Cruickshank to investigate five years ago, and he was strongly critical of the system. But he recently attacked both the government and the banks for the fact that little has changed in the...

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