In reaction to Barclays announcing the thousands of job cuts over the next few years, the Institute of Economic Affairs (IEA) has predicted a mass job fallout across the banking sector.
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div>In reaction to Barclays announcing the thousands of job cuts over the next few years, the Institute of Economic Affairs (IEA) has predicted a mass job fallout across the banking sector, in regards to over-regulation.
Mark Littlewood, Director General at the Institute of Economic Affairs, predicted that in line with any over-regulation within the banking sector, further job cuts could occur.
In a statement he said: "Contrary to popular belief, financial services are one of the most highly regulated sectors of the economy. This continual trend towards high regulation and high compliance will simply push the investment industry to less heavily regulated countries.
"If we continue to regulate away professional discretion from those working in the City of London, we risk undermining the City and seeing our investment banking sector shrink.”
Barclays Bank announced earlier this month that is set to cut around 19,000 jobs by the end of 2016.
It is understood that this year, just under 15,000 jobs will be terminated.
On the matter of the job losses at the high-street bank, Mark continued: “The loss of many thousands of jobs at Barclays is sad and depressing news. The authorities are in danger of trying to ensure all banking is safe.
“Instead, we need to ensure that banks can fail safely and that collapsed banks can be wound up without requiring any support from the taxpayer.”
The Institute of Economic Affairs promotes understanding by analysing the role of markets in solving economic and social problems.
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