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If Lending Halves, Should Half The Banks Close?

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Looking at the BoE figures

http://www.bankofengland.co.uk/statistics/...kstats_full.pdf

Suddenly struck me that we have seen a 50% drop in most forms of lending. Thus the size of the lending market has halved. Surely this new smaller market would be well served by a banking industry only half the size?

So will half of the banks close down, board up the windows of their branches...

... or will all banks lay off half of their staff and close half their branches?

Personally, I suspect new banks will grow up and displace the existing banks because they are saddled with the remains of the popped bubble, and it will prevent them from ever being competitive again.

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Not so straightforward. If they make twice the margin on every loan via higher rates then it's no change!

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Stourbridge has 2 branches of Lloyds TSB in the high street, opposite each other. One was created when they took someone over, was it C+G?

Anyway, one of the branches closed a good few months ago with a notice in the window to use the other branch. Not enough business I expect.

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Not so straightforward. If they make twice the margin on every loan via higher rates then it's no change!

In income terms, yes, but in terms of costs, half the number of loan applications to administer = half amount of work. Lose the staff...

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  • 399 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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