UK government details loans under RBS insurance scheme
The UK government has today issued details of the Royal Bank of Scotland's participation in the asset protection scheme and there is some concern about the make-up of the loans in question. More than half of the £280 billion of loans in the scheme have been agreed with foreign entities, something which is causing concern within the UK government. In reality, the UK taxpayer is paying to ensure loans which were agreed with foreign entities.
The massive document which details the RBS participation in the scheme also confirms that the UK government has the power to "parachute in" experts if it believes that the loans in question are not being managed correctly. Nobody quite expected the amount of detail which has been published and indeed there will be some embarrassment to those involved in the loans in question.
The Royal Bank of Scotland's entry to the scheme is funded by the UK taxpayer and will see the government's share stake in the business increase from 70% to 84%. It is also believed that the UK government has obtained the authority to block any staff bonus payments from Royal Bank of Scotland although whether this particular power will be used in the short to medium term is open to debate.
KPMG warns of more losses for high-street banks
Accountants KPMG have today issued a damning report on the UK banking sector with a belief that bad loans will remain a significant issue for high-street banks for the foreseeable future. A weakening employment market and a property sector which has show signs of life, although never seems to turn the corner could be the catalyst for further large write-offs by the U.K.'s leading banks.
High street banks see tough competition for current accounts
22/04/2015 Competition in the current account market is picking up as major banks come under pressure to offer perks and rewards. HSBC, Barclays, Lloyds Banking Group and RBS have so far dominated the current account market, holding 75% of all accounts. Since the seven day switch guarantee was introduced in September 2013, some smaller firms have widened their elements of competition, offeri...Read More
PwC predicts possible double dip recession
A leaked report by PwC has today cast doubt upon the UK government plans to overhaul the UK banking system. The report was commissioned by major banks in the UK such as Barclays, HSBC and Royal Bank of Scotland and suggests that the introduction of new rules, to govern capital adequacy and banking liquidity, could actually reduce liquidity in the UK market place and push the UK economy back into r...Read More
North-south house price divide widens
14/10/2014 New data from the Office of National Statistics (ONS) has shown the north-south house prices divide is at its biggest ever. The difference between the average house prices in London and in the North East has grown to its widest in history, with a £360,000 gap. An average house price in London is £514,000, while in the North East it stands at £154,000. London saw an increase of...Read More
Government introduces new Wi-Fi broadband initiative
The UK authorities have put the future of public Wi-Fi accessibility at risk with a suggestion that public bodies such as libraries and universities will be liable for possible prosecution if their system is used to download pirate material. This has come as a major blow to the public sector and the roll out of Wi-Fi across the UK is now potentially at risk. There is no doubt that illegal download...Read More