UK banks agree to simplify future accounts
The British Bankers Association has confirmed that UK banks have all agreed to abide by simpler accounting methods in the future as a means of comparing like-for-like across the UK financial and banking sector. This comes after severe criticism of UK bank report and accounts, many of which seemed to treat similar assets in a different manner. During these difficult economic times this made it near impossible to compare like-for-like using published report and accounts, thereby placing many investors and regulators in the "dark".
The Financial Services Authority (FSA) has confirmed its agreement with the British Bankers Association new code of practice although a discussion paper has been launched to confirm and clarify whether the changes do actually go far enough. For many years there have been problems with regards to off balance sheet debt and other issues which made it very difficult and time-consuming to get to the bottom of a bank's debt position and investment position.
The proposed change in the accounting methods would appear to go hand-in-hand with the so called "living wills" announced just a few days ago. All of these different procedures and changes are coming together to try and simplify the UK banking system and eliminate, or reduced as much as possible, the chances of a major credit crunch happening in the foreseeable future.
Share this..
Related stories
Will China suffer if Google leaves?
Google has suggested it may well close its Chinese operation after the company recently encountered wave after wave of cyber attacks. The US government has joined the fray today suggesting that the Chinese authorities need to work with Google on security and creating an environment in which Google and other US companies can proposer. There is the potential for some significant political fallout wh...
Read MoreAlistair Darling receives a £12 billion budget windfall
When Alistair Darling steps forward in 10 days time to deliver his budget speech he will be in receipt of a £12 billion budget windfall as a consequence of the recent recovery in the UK economy. In what many believe will be the most politically sensitive budget in years, with the government certain to use the stand to the champion its own political agenda, the divide between the Conservative part...
Read MoreSales up and investments at a record high for NS&I
This year, a record £78.90 billion has been invested in NS&I products, up 7.6 per cent from 2005 to 2006 and sales are up by 18.2 per cent to £14.17 billion for the same period. NS&I have put the strong sales down to major promotional activity for the 50th anniversary of the launch of Premium Bonds, as well as rapid growth in sales of NS&I's Inflation-beating Savings and Direct ISA and an advert...
Read MoreBank of England warned against false hope
A number of analysts have stepped forward to suggest that the Bank of England MPC should refrain from over exuberance in the light of more upbeat statements and reports on the UK economy. The committee is due to meet this month and while it appears as though they will rubberstamp an easing of the aggressive "jumpstart" policy seen over the last few months there is no doubt that we are not yet out...
Read MoreSchool curriculum to include debt management
It has been revealed that the UK government will push through with plans to teach children as young as five how to manage debt. Whether or not teaching children about money management at the age of five is a little "too far" is open to debate but the truth is there needs to be a wholesale change in the way we hide from debt in the UK. Starting at school would appear to be the perfect strategy!...
Read More