The Treasury Committee today questions the UK’s largest banks on savings rates and CEO pay.

Several banks have also increased the pay of their chief executives. NatWest Group’s chief executive received £5.2 million in 2022 (up 46% from last year), and HSBC’s group chief executive received £5.6 million (a 14% rise in his pay package). The chief executive of Lloyds Banking Group could earn as much as £9.1 million this year, or £7.4 million with no increase in share price.

The Committee asks whether CEO remuneration is linked to bank profits, net interest margins, and the performance of their savings and mortgage businesses.

The MPs also ask each bank for a breakdown of the revenue and profits generated from their savings products, the value of deposits in their instant easy access saving accounts, and how many customers have over £5,000 in these accounts.

Separately, the banks are asked about the number of basic bank accounts they have opened and closed, and how many applications for basic accounts have been refused over the last year. The largest banks are required by law to provide basic accounts, which are often vital for those who don’t qualify for a standard account, for example due to a poor credit score.

They are also asked how many branches they intend to close in the next two years, whether they have closed any business accounts without a customer’s permission, and for information on house prices and mortgage availability in flood risk areas.

Harriett Baldwin MP, Chair of the Treasury Committee, commented:

“While consumers are always advised to shop around for the best deals, it is difficult to avoid the conclusion that our biggest banks are taking advantage of their most loyal customers to increase profits and CEO pay.

The most powerful tool consumers have is to take their money elsewhere. But the banks also have a responsibility here. They need to step up and offer our constituents reasonable savings rates.”