This report was published on 18th May 2009.
Posts Tagged Banking
Banking Crisis: dealing with the failures of the UK banks
This House of Commons Treasury Committee report was published on 1st May 2009.
Bank of England Inflation Report (November 2008)
The Bank of England issues an inflation report every quarter. The report for November 08 is out now and it serves two purposes: first, its preparation provides a comprehensive and forward-looking framework for discussion among the Bank’s Monetary Policy Committee members as an aid to their decision making; and second, its publication allows them to share their thinking and explain the reasons for their decisions to those whom they affect.
“CPI inflation rose to 5.2% in September. Sterling depreciated further, placing renewed upwards pressure on import prices. Even so, the near-term outlook for inflation improved significantly in the wake of sharp falls in commodity prices. Measures of household inflation expectations fell back and earnings growth remained contained. In the central projection, inflation slows sharply in the near term, as the contributions from energy and food prices decline. Further out, inflation falls well below the 2% target, reflecting a larger margin of spare capacity and the waning impact on import prices from the lower level of sterling. The prospects for economic growth and inflation are judged to be unusually uncertain.”
Banking Bill 2007-08
Is the collapse of the financial system as we know it a suitable subject for flippant remarks? It’s a quandary, let me tell you. On one hand, people may think that I’m not taking things as seriously as an information professional (librarian to you and me) should; on the other hand, if you can’t laugh about it then blubbing and bleak thoughts are the alternative option.
Hey ho: the UK Government have introduced the following Bill as part of their attempt to hoist the UK economy out of a very deep, dark pit. Best of luck to you Alistair, Gordon, et al! They’ve also fastened a £500bn safety net to the bottom of the pit in the hope that we all won’t fall through the holes.
Here’s to a soft landing!
Cheers!
**UPDATE**
Those cheeky BBC scamps! The figure quoted when I originally posted was £500bn. Now (4 hours later) it’s down to £400bn! Are we running out of money that quickly!?!?!
Banking Reform
Apparently there has been some kind of economic blip recently. Has anyone heard anything about it? Well, have no fear: those tireless lads and lassies down at the House of Commons Treasury Committee have grafted day and night to come up with ways of stopping those irresponsible banks from ever again destroying Western civilisation as we know it.
“The overall case for legislative action in the field of banking regulation is compelling. The authorities must be able to deal with failing banks effectively and with an adequate range of options. The responsible authorities require access to the information which must drive their actions. An effective statutory depositor protection scheme which commands the confidence of consumers is needed in order to reduce the likelihood of disorderly bank failure following a retail run and thus to reduce in turn the requirement for extra-statutory guarantees by the Government.”
Excellent. We can all rest easy tonight.
Access to Bank Finance for Scottish SMEs
The Scottish Government issued this research report yesterday which investigates the difficulties that a significant minority of Scottish SMEs that took part in the 2005 and 2006 Annual Small Business Surveys (ASBS) reported in accessing finance from banks.
“A striking finding is that almost two thirds of the businesses approached only one bank, typically their existing bank, and did not ‘shop around’ once their application for finance had been rejected. This may suggest concerns about the time and resources involved in approaching other banks, uncertainty in approaching banks with which they were not familiar, or a ‘discouraged borrower’ effect. Supply-side banking interviews indicated that difficulties are more likely to be encountered by ‘new to the bank’ customers – relationship banking suggests that the existing bank is likely to be more sympathetic to funding requests.”
Financial Stability and Depositor Protection: Special Resolution Regime
This Command Paper issued by the UK Treasury outlines the tools which the Authorities would like to have at their disposal which would allow them to intervene effectively when banks are close to failure.
“The publication of this document is intended to enable all stakeholders with an interest, particularly those with relevant technical expertise and knowledge, to engage with the Authorities on the detail of the proposals, prior to the introduction of the primary legislation later in 2008. This will help ensure that the measures which are introduced are effective, providing the Authorities with the necessary additional tools for dealing with those rare cases of bank failure, whilst maintaining the UK’s position as the world’s pre-eminent international financial centre.”
