Tuesday, June 23, 2009

Hight St Bank Stats – May 09

May figures for the main high street banks

The banks’ net mortgage lending of £2.3bn was the weakest monthly rise since early 2001, although mortgage approvals continue to increase. Personal deposit inflows continue to be weak and consumer credit growth is minimal. Lending to financial companies rose marginally while lending to non-financial companies was little changed overall.

Posted by 51ck-6-51x @ 05:58 PM (1113 views)
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5 thoughts on “Hight St Bank Stats – May 09

  • hmm, http://img205.imageshack.us/img205/1795/tempfmd.png is not available

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  • So probably by the end of the year, especially if IR are rising, the banks will be taking more on deposits than they are lending!

    Have I got that right?

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  • I see a long term trend emerging, and it aint good news for retail banks.

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  • stillthinking says:

    When a bank gives out a mortgage they credit the sellers account. +150K & -150K. The seller can move his virtual money abroad, or buy goods not made in Britain.
    The only way the bank can honour their commitment to a seller who moves his money abroad whether out of distrust for sterling or desire for flat screen tvs, is to -sell on that debt-. Not move some commodity, not pass on something real, just sell the debt…

    The banks have to sell on and they are selling an unreliable debt in a declining currency. Of course they get the very worst price possible.

    Lending money to financial companies rising is a terrible sign, for all we know they are already gambling on the demise of sterling and are borrowing to purchase foreign money. Even I think about doing that and I am literally as broke as a unconscious drunk on the street.

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  • mark wadsworth says:

    @ Nomad, I don’t think you have got it right.

    If (for example) nobody ever took out a mortgage, then the bank would see cash coming in, it would repay other debts (including depositors – which it can’t just get rid of, but it can reduce its interest rates to nil and start charging them for the privilege of having an account).

    Similarly, banks can only increase their mortgage lending if they can also borrow more money (whether from other banks, from ‘money markets’ or customer deposits*).

    In the grander scheme of things, a banks assets (outstanding mortgages) and liabilities (bonds and customer deposits) net off to nil.

    * Of course, once you’ve got an asset price bubble going, the money that people deposit is merely money that they have made by selling a house to somebody who took out a correspondingly large mortgage.

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