UK banks to trial living wills
A small selection of UK banks will this year start trials of so-called "living wills" which have been encouraged by the Financial Services Authority (FSA) in the event of a collapse of a banking institution. In simple terms these so-called living wills will allow regulators to come in and have ready made plans to wind down the operation, exposing every nook and cranny and investment operation in a short space of time.
One of the problems we saw when the credit crunch began was the fact that many banks and many financial institutions had in fact acquired sliced and diced investment products which were indirectly connected to various banking institutions. Once one of the major components of the investment chain collapsed the whole system began to fall like a pack of cards and ultimately investments which had been worth billions upon billions of pounds became worthless overnight.
This stricter regulatory environment in the UK, and around the world, should at least reduce the chances of one major financial collapse dragging down the whole sector although how detailed and how useful these plans will be remains to be seen. The FSA has been very proactive on this particular front and the trial, which begins this year, will offer an interesting look into the UK banking sector.
Share this..
Related stories
Did the government abuse its power in the banking sector?
While the banking sector has certainly fought back against the UK government and the various demands which have been made over the last eight months, some still believe this is payback time for the UK government, which is believed to have forced through the Lloyds bank and HBOS merger. Even though there is no hard evidence to suggest this is the case it is rumoured that Gordon Brown himself became...
Read MoreIs it too little too late for savers in the UK?
As the Bank of England prepares for the announcement of a 1/2% reduction in UK base rates there is more concern regarding the financial health of savers across the country. There has been a substantial amount of media coverage over the last few days regarding the older population, many of whom have built up a substantial nest egg for their future, and the impact which lower interest rates are havi...
Read MoreState pension age to rise to 70 by 2050
03/09/2015 The state pension age may rise to age 70 by 2050 as the Office for National Statistics (ONS) revealed a sharp rise in life expectancy. Over the past century the average UK life expectancy has increased over the past century from 51 years to 79 years for men and 55 years to 83 years for women. Around 20% of men aged 60, and 31% of women, are expected to live until at least 90 year...
Read MoreMitsubishi announces £10,000 off electric car
The award-winning Mitsubishi i MiEV electric vehicle will now be available with an additional £10,000 reduction from the original cost price. The vehicles will now retail at £28,990 although when you take into account the UK government's £5,000 green incentive this figure falls further to £23,990. There is no doubt that the Mitsubishi i MiEV is one of the most eagerly awaited electric cars to...
Read MoreMPC dove predicts rapid inflation fall
Inflation will fall to the two per cent target by the summer, monetary policy committee (MPC) member David Blanchflower believes.In a speech last night at the University of Stirling, the MPC's leading dove indicated his continued commitment to fighting the next rate hike, widely expected to take place during the next quarter.The Bank of England's MPC has voted to raise interest rates three times i...
Read More