Qualified advisers answering your
Financial Questions
call 0800 092 1245

Why don't the banks turn on the liquidity tap?

If there is one thing becoming more and more apparent with regards to the UK economy it is the inability of UK banks to turn on the liquidity tap. We have seen mortgage approvals fall dramatically, mortgage deposits rise, the net repayment of debts and indeed many believe that the criteria for mortgage approvals could be tightened over the next six months. Against this backdrop it is nigh on impossible for the UK economy to push ahead in the short to medium-term and the UK government and Bank of England will need to turn the screw.

When you consider the tens of billions of pounds which have been poured into the UK banking arena, on behalf of UK taxpayers, is it any wonder that taxpayers are now concerned about any return on this investment. If the UK economy takes a further nosedive where will this money go? Where would any future bailout funding come from?

There is a feeling if UK banks do not take this opportunity to turn on the liquidity tap in the short to medium-term, and effectively rescue the UK economy, then we could be on the verge of a disaster. While everybody appreciates the risk/reward ratio and the fact that risks had been taken in the past, has the UK banking arena moved too far in the opposite direction?

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details