UK banks share burden on community funding
Banks in Britain, including NAB, are negotiating with the government to establish a community development fund that will draw, in part, on money sitting in dormant accounts. Sky News reported on the talks overnight.The agreement of the banks to fund what Sky describes as a "big society bank" is part of wider effort by the banking sector to reach a series of reciprocal pledges between Britain's banks and government.Sky News reports that these could include a commitment to maintain a regulatory level playing field; an agreement "not to impose any further UK-specific payroll, activities or transactions taxation" on the industry, according to somebody involved in the talks; and a deal with the Financial Services Authority to offer favourable treatment to the capital provided by the banks for the funding initiative.The banks will help establish a new institution that will "act as a sustainable provider of wholesale finance to Community Development Finance Institutions across the UK".UK banks also want ministers to agree not to interfere unilaterally with the regulatory structure relating to banks' "business model, size and structure".