What does the FSCB aim to promote in the UK's banking sector?

The Financial Services Compensation Scheme (FSCB) plays a vital role in the UK banking sector by aiming to promote good banking practices. This involves ensuring that banks adhere to high standards of conduct and management, ultimately protecting consumers and fostering trust in the financial system. By encouraging good practices, the FSCB not only safeguards the financial wellbeing of consumers but also contributes to the stability and integrity of the banking industry as a whole. This can include promoting responsible lending, effective risk management, and transparent operations. Good banking practices help to enhance customer confidence, which is essential for a healthy banking environment. In contrast, while increased profits, competitive rates, and financial literacy have their own importance, they are not the primary focus of the FSCB's objectives in promoting a resilient banking sector.