S&P downbeat on UK banking system
Standard & Poor's, the credit rating agency, has today issued a downbeat assessment of the UK banking system. The agency has reiterated its belief that the UK banking system is no longer considered to be one of the world's elite and is in fact in the agency's third tier banking industry risk assessment category along with the likes of Portugal, Chile and Austria. While the assessment was flagged some time ago a report issued today puts more meat onto the bone and was the main reason why the sector fell back in late trading on the stock market.
The fact that the UK banking industry is now considered along the lines of Portugal, Chile and Austria is a bitter blow for the UK government although hopefully the banking system can regain its position in the higher categories of the Standard & Poor's risk assessment classes in due course. However, the ongoing drip feed of negative comment and negative sentiment towards the UK banking sector is certainly having an impact on share prices and investor confidence.
There is no doubt that the UK banking sector will be a vital element of the eventual economic recovery in the UK but when it will return to a firm growth path remains to be seen.
Share this..
Related stories
Confidence in the UK economy has been hit
Even though there were signs that the UK retail sector was starting to improve at the end of 2009, today's news of a potential leadership challenge against Gordon Brown may well wipe away any goodwill and confidence built up over recent weeks. A government which is effectively out of control and a leader who would appear to be unwanted by a significant minority of MPs does not bode well for the sh...
Read MoreMervyn King issues warning on UK economy
Mervyn King has again fairly and squarely dashed hopes of a recovery in the UK economy in the short term. He has issued a warning this evening that UK workers need to brace themselves for further pay cuts, or pay freezes, in the short to medium term and confirmed that he believes the UK economy will struggle to grow until the UK budget deficit is addressed. There is widespread speculation that...
Read MoreInvestigation into Flyglobespan collapse
The Scottish government has today announced an investigation into the collapse of Scotland's largest airline company, Flyglobespan. The company collapsed last week after last-minute rescue talks failed and the group had no alternative but to call in the administrators. Over 500 staff lost their jobs at the company and thousands of holidaymakers were left stranded overseas, many of them unprotected...
Read MoreIs Germany about to cut Greece adrift?
Amid signs that the German economy is coming under intense pressure with zero growth in the final quarter of 2009, against growth of 0.7% in the third quarter, there are concerns that the German authorities are unwilling or unable to commit to a rescue package for the Greek government. After apparently doing all they could to calm nerves in the region the German authorities led Euro leaders in iss...
Read MoreSterling falls to 2 month low against the dollar
The UK currency is again under pressure after revised gross domestic product figures fell short of economist's expectations within 0.2% contraction in the UK economy in the third quarter against expectations of a 0.1% reduction. While the consensus opinion is that the UK will move out of recession in the final quarter of 2009 there is concern at the sluggish performance of the economy over the las...
Read More