Bank of England criticises UK lenders
The Bank of England has today criticised UK lenders citing the fact that many interest-rate cost savings have not been passed on to customers. Even though interbank borrowing rates have fallen nowhere near the same amount as UK base rates the Bank of England still believes that the vast majority of savings have not been passed on to UK businesses and UK households. Indeed there is even a suspicion that banks are expanding their profits by increasing the rates they charge customers.
This is one of the few times that the Bank of England has criticised UK lenders directly and takes the ongoing battle to improve credit lines to a new level. If there is one authority in the UK which has the influence, the reputation and the power to make things happen in the UK banking arena it is the Bank of England. The Bank of England enjoys a very close relationship with the UK banking community and is ultimately on the side of UK bankers in the tussle between government policy and bank profits.
So the fact that the Bank of England has come out and criticised UK lenders is something of a surprise, although not wholly unexpected when you bear in mind the current economic situation.
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