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Eddie_George

Uk Banks To Lose Their Status As ‘Gatekeepers’ To The Payment System

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In a significant breakthrough, the Bank of England (BoE) has just announced it will be adopting a policy change that Positive Money has been arguing for over the last 2 years. The BoE will finally allow non-bank ‘payment service providers’ (PSPs) to hold accounts at the BoE, so that they can compete with existing banks to provide current (checking) accounts. This will break the stranglehold that large UK banks have over the provision of payment accounts – and represents a step towards further changes that would limit the ability of banks to create money.

http://positivemoney.org/2016/06/bank-of-england-uk-banks-to-lose-their-status-as-gatekeepers-to-the-payment-system/

Sounds like good news.

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Bah, I want a BoE current account with a cheque book. Looks like I still need to keep an eye on the job listings for that to happen.

Theyre closing them down. Too late.

My partner has one. Tis quite cool.

Edited by R K

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Bah, I want a BoE current account with a cheque book. Looks like I still need to keep an eye on the job listings for that to happen.

I wants me one of dem BoE free money print machines hot dayum

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Sounds like good news.

Does it?

Does it do anything to limit what the banks currently do? Or just introduce new players who - like building societies - will undertake some but not all regular bank activities?

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It's nothing to do with having a license to create commercial bank money. It's all about direct access to clearings, which up until now required a BoE clearing account.

http://www.paymentsuk.org.uk/news-events/news/new-report-identifies-improved-access-payment-systems-key-driver-competition-and-0

NB: nothing has changed yet. PayPal etc still need a full fat central bank account + licence to provide the full set of payments services. The general mood music in the industry is that this is bad... Although it helps to keep things tidy.

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Theyre closing them down. Too late.

My partner has one. Tis quite cool.

I know someone with one......tried to buy a pair of shoes and the shoe shop would not accept the cheque and cheque card at the time....thought it was monopoly money. ;)

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I know someone with one......tried to buy a pair of shoes and the shoe shop would not accept the cheque and cheque card at the time....thought it was monopoly money. ;)

Interesting. I can see why institutions have accounts with the BoE but not individuals. Anyone care to explain why, out of interest?

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Theyre closing them down. Too late.

My partner has one. Tis quite cool.

Always easy to remember the sort code

10-00-00

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Interesting. I can see why institutions have accounts with the BoE but not individuals. Anyone care to explain why, out of interest?

Banks always used to insist that you banked with them (to prevent fraud opportunities). The Bank of England was no different...

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