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Watching pesto on BBC news talking about banks being forced to implement measures to hold more capital from around 2013 onwards. Does this mean loans will be more expensive? Will mortgages be even harder to come by? Will house prices therefore fall? More importantly for me, will savers be offered better interest rates?

Sorry - posted twice. Pls remove this one thanks!

Edited by shell

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Watching pesto on BBC news talking about banks being forced to implement measures to hold more capital from around 2013 onwards. Does this mean loans will be more expensive? Will mortgages be even harder to come by? Will house prices therefore fall? More importantly for me, will savers be offered better interest rates?

http://www.bbc.co.uk/news/business-11275688

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In order to have more capital reserves, wouldn't it be necessary for the banks to encourage savers by offering higher interest rates?

Or will they just print a few billion willion pounds and say their capital reserves are on target?

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In order to have more capital reserves, wouldn't it be necessary for the banks to encourage savers by offering higher interest rates?

Or will they just print a few billion willion pounds and say their capital reserves are on target?

Attracting savers won't give you more capital - it just gives you more money.

I think losing savers is more likely to increase your capital ratio.

You need investors on the equity side of the balance sheet.

Edited by Alan B'Stard MP

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Attracting savers won't give you more capital - it just gives you more money.

I think losing savers is more likely to increase your capital ratio.

You need investors on the equity side of the balance sheet.

:blink:

But how can that be Mr B?

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:blink:

But how can that be Mr B?

Your capital is the left-over from your assets once you subtract your liabilities.

Someone deposits some money as a saver - both assets and liabilities go up by an equal amount.

Therefore the balance sheet capital position hasn't changed - but you've just got more cash to find a home for - and the ratio between capital and assets has increased.

Edited by Alan B'Stard MP

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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