FCA: Brits saved almost £1bn after shake-up of overdraft rules according to City regulator April 19, 2023 People have collectively saved nearly £1 billion due to a shake-up of rules around overdrafts, according to calculations by the City regulator. The rules, introduced by the Financial Conduct Authority (FCA), reduced high fees for unarranged borrowing and swept away complex charging structures, which made it hard for people to compare borrowing costs. The £1 [...]
Credit card market ‘broken’ with as little as three per cent of customers switching, but could open banking provide a solution? April 19, 2023 The UK’s credit card market is “broken” with as few as three per cent of customers changing providers despite the hefty costs that consumers face, a new report shows. According to fintech firm Cardeo, the UK is the European country most reliant on credit card spending with 35 per cent of consumer credit in credit [...]
Post SVB reforms to UK banking regulation leaves sector divided April 19, 2023 Figures in the banking sector are divided over suggested reform to deposit protection, with regulators reported to be mulling raising the deposit insurance threshold in the wake of the collapse of Silicon Valley Bank (SVB) last month. According to a report from the Financial Times, regulators are considering updating the Financial Services Compensation Scheme (FSCS) [...]
Credit Suisse in High Court tomorrow: Bank sued over securities linked to 2008 crisis April 19, 2023 Credit Suisse is set to appear at the High Court in London on Thursday to defend itself against a $160m (£129m) claim over allegations the Swiss bank made “fraudulent misrepresentations” related to the sale of residential mortgage-backed securities. The claim, brought by Loreley Financing, a subsidiary of German bank IKB, argues it was misled by [...]
HSBC exaggerating costs of spinning off Asia unit, Ping An argues in rare rebuke April 18, 2023 Ping An, HSBC’s largest shareholder, has publicly criticised the bank ahead of its AGM as it confirmed it will back calls to restructure the lender. The Chinese insurer, which holds an eight per cent stake in the bank, has long argued in favour of spinning off HSBC’s Asian business, which generates the vast majority of [...]
‘Worst volatility is behind us’ after March’s mini-crisis, says Goldman’s David Solomon April 18, 2023 Goldman’s chair and chief executive David Solomon said the worst of March’s banking difficulties had passed, but stressed there were still dangers ahead. On an investor call following first quarter results, Solomon said “it appears the worst volatility is behind us thanks to prompt action from regulators.” Solomon said the quarter was “certainly volatile”, highlighting [...]
Goldman’s struggles continue as Bank of America boosted by higher interest rates April 18, 2023 Goldman Sachs’ struggles continued today after it reported a slowdown in its investment banking division, with overall revenues coming in below market expectations. Goldman Sachs’ revenue fell five per cent to $12.2bn, lower than market expectations, while its profit fell 18 per cent year-on-year to $3.1bn. Its investment banking revenue remained subdued amid the continued [...]
Ping An to vote for HSBC break-up at upcoming AGM – reports April 17, 2023 Ping An has thrown its weight behind proposals from investor Ken Lui to break up HSBC ahead of the bank’s Annual General Meeting (AGM) in early May, according to Reuters. The Chinese insurer will vote in favour of resolutions calling for the bank to lift its dividends and for it to provide regular updates on [...]
Stablecoins need ‘high quality’ backing to meet BoE’s standards, Cunliffe warns April 17, 2023 Stablecoins could improve efficiency in the payments sector but will need to be backed by “high quality and liquid assets” to meet the Bank of England’s regulatory standards, deputy governor Jon Cunliffe said today. In a wide ranging speech on the state of the payments sector, Cunliffe detailed the Bank’s work to ensure new forms [...]
Open banking boost as regulators vow to support innovation and consumer protection April 17, 2023 Regulators have set out their plans for the next stage of open banking as they hope to push innovation and competition in the banking sector. Under proposals announced today, a new long-term regulatory framework will be established to secure the “existing achievements” of open banking and “unlock its future potential”. The FCA’s Sheldon Mills and [...]