Banks will be forced to ring-fence savers' cash from their risky casino-style investment arms to protect deposits and avoid a run like that which brought down Northern Rock in 2007.
Lenders paid out £500 million compensation in March to victims of payment protection insurance (PPI) mis-selling, the highest single month of redress in 2012 .
Lloyds Banking Group (LBG) has caved in to huge public and media pressure by announcing it will offer new policies to its pet insurance customers whose animals have a medical condition, after the bank originally axed cover.
RBS has set aside an additional £125 million to cover payment protection insurance (PPI) claims, as the realisation of the true scale of the mis-selling scandal grows by the day.
Barclays has extended its Pingit app, which allows you to send money just by using a mobile phone number, to virtually any bank and building society current account customer.
Squeezed consumers searching for the best deals face a "major risk" of being sold financial products they do not need, the finance watchdog warned today.