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cashinmattress

Fears For Uk Banks As Profits Lag Rivals

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BRITAIN’S banks are falling behind their global rivals and may never fully catch up, a survey reports today amid warnings over the impact of regulation on the sector.

Although their major international competitors have seen their profits recover to pre-crisis levels, UK bank profits are still 58 per cent below the peak reached in 2007, research for The Banker magazine found. Four years ago, British banks were the second most profitable in the world after the Americans; now they languish in fifth place behind US, Chinese, French and Japanese banks. HSBC is the only British bank to impress after ranking higher than last year while Royal Bank of Scotland, Lloyds Banking Group and Barclays slid down the table.

The Banker’s editor Brian Caplen said UK banks now face a “Herculean task” to regain their position and there are “serious doubts over whether the sector will ever recover”. His comments came after Barclays chairman Marcus Agius and British Bankers’ Association (BBA) chief executive Angela Knight warned over the toll regulations were taking on the sector at the trade body’s annual conference in London yesterday. Agius hit out at demands from the Bank of England and other regulators that banks should hold more cash in reserve to make them more resilient to future shocks.

“Banks cannot and never will be risk free,” he said. “The idea of risk-free banking is an oxymoron. “Some regulators seem to believe that ever more capital is the solution to every regulatory problem,” he said. “Carried too far, this thinking would have profoundly negative consequences.” He said investors would walk away from the low returns highly capitalised banks would generate, arguing that ways should be sought to let banks fail without imperilling the rest of the system. Knight warned plans to ring fence retail banks from investment banking operations could place the UK at a disadvantage to international rivals who are not considering a similar move. She added new regulations would also hit small business and mortgage lending.

Oh, for shame. The UK apparently lags the market yet yields the best bonus structure, has the support of the state on deposits and investments, and likely has most politicians per capita in their pockets.

And what of the UK bankers empty threats of moving further afield to chase the money and employment prospects?

Pile o sh1te.

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Given what the French banks have just done with Greek bonds, they are clearly insolvent.

As are the US ones. As are the Chinese ones. And the Japanese ones have been for over 20 years.

They are all equal last.

Edited by leicestersq

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we must get them lending again to get their profits up.

or, maybe our banks are making real profits for the first time in a decade?

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He said investors would walk away from the low returns highly capitalised banks would generate, arguing that ways should be sought to let banks fail without imperilling the rest of the system.

One easy way to increase the return on capital for your investors is to reduce your costs, your main costs being your big fat salaries you great big greedy idiot.

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  • 284 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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