Can we really blame UK banks for reduced liquidity?
Even before the UK banking sector reporting season began today the UK government was making threatening noises with regards to a potential increase in banking taxes and further regulations regarding remuneration and bonuses. Yet again it is the UK banking sector which has been demonised by the authorities but can we really blame UK banks for the reduced liquidity in the money markets?
The UK banking sector has become an easy target for the authorities when looking to deflect any criticism of the own proposals and their own handling of the current delicate economic situation. However, his constant drip feed of negative news and attacks on the UK banking sector is starting to wear thin now and many people are now looking towards the UK government to take action. This comes at a time when the UK government is seriously short of finance to assist the UK economy and has been unable to introduce any relevant financial stimulus programs.
By effectively switching the blame for this lack of funding to the UK banking sector George Osborne and David Cameron are looking to pile up yet more pressure on the likes of Lloyds Bank, Royal Bank of Scotland, Barclays Bank, HSBC and the rest of the UK banking arena. But is this really sensible?
Share this..
Related stories
Small businesses still suffering from credit squeeze
A Bank of England report has today confirmed that small business funding is still well below government targets despite serious pressure placed upon small business lenders over the last few months. The report from the Bank of England confirms there has been little change in lending to small businesses between the first quarter of 2010 and the final quarter of 2009. So what are the consequences of...
Read MoreUK government looking to replicate Chapter 11 US regulations
The UK government is said to be considering a significant change in UK bankruptcy and insolvency laws could sway in favour of businesses and consumers as opposed to creditors. One of the main reasons why the government is looking into this particular area of the market is the fact that some £90 billion of leveraged buyout loans will become due for repayment by 2015. There is growing concern that...
Read More'Delay' on PPI recommended
Consumers should not be sold payment protection insurance (PPI) within 14 days of buying a loan, the Competition Commission (CC) has announced.PPI is designed to allow people to still repay loans even if they suffer a loss in income or health.However, the CC said that the "vast majority" of the 13 million PPI policies in the UK are sold to customers at the same time as they take out their loan.Thi...
Read MoreUK Treasury lends £100 million to Landsbanki
After the big political spat at the weekend it has been revealed that the UK government has agreed to lend £100 million to Iceland's Landsbanki in a move which should see UK depositors receive some form of compensation. The loan is secured against the assets of the group held in the UK and while there are hopes that this is a major breakthrough, nothing is guaranteed.
The UK gover...
Will the UK Treasury dare to investigate the UK banking sector?
Alistair Darling's hint that the UK Treasury would instigate a competition enquiry into the UK banking sector as a whole unless lending liquidity was increased across the board has opened up a very interesting debate in UK financial markets. For many years the UK government and UK financial sector have worked hand-in-hand to fund government projects and increase economic activity within the UK. Ho...
Read More