RBS to introduce negative interest rates on corporate investment accounts August 19, 2016 The Royal Bank of Scotland (RBS) is to start charging some of its top corporate clients to hold cash with the bank. RBS wrote to some of its largest investment banking customers this week to tell them it could no longer let them keep cash held as collateral in their accounts for free and will impose negative interest rates from [...]
CMA proposals to hit bank profits in latest squeeze on sector August 19, 2016 Banks should prepare for another squeeze on profits thanks to the latest recommendations to boost competition in the sector. Ratings agency Fitch said today proposals from the Competition and Markets Authority (CMA) to encourage customers to switch bank accounts would put even more pressure on bottom lines at the UK's top high street lenders. The central [...]
Too big to fail still too big a problem for banks August 18, 2016 Cleaning up the world's biggest banks in the event of a crisis is easier than it has been but there is still more to be done, the Financial Stability Board (FSB) has warned today. In particular, the papers published by the FSB, which is chaired by Bank of England governor Mark Carney, said more could be [...]
Lloyds Banking Group, HSBC and Royal Bank of Scotland in firing line in Australian rate rigging case brought in the US August 18, 2016 Lloyds Banking Group, HSBC and Royal Bank of Scotland are all in legal hot water after a case was filed in the US against a slew of banks on allegations they rigged a key Australian benchmark rate. The US lawsuit claims the lenders manipulated the bank bill swap rate (BBSW), a benchmark used mainly in Australian [...]
Rabobank mulls Brexit and US election uncertainty as profits dive August 18, 2016 Never mind Brexit – Rabobank revealed this morning it was also concerned about the impending US presidential elections and the Chinese economy, while unveiling a drop in its net profits and a fall in headcount. The figures The Dutch bank reported net profit of €924m for the first half of 2016, down 39 per cent compared with €1.5bn the [...]
About-turn? Co-operative Bank losses shrink August 18, 2016 Things are looking up again for the once-troubled Co-operative Bank, as it unveiled incredible shrinking losses… The figures Pre-tax losses shrank to £177m in the six months to the end of June, £27.2m less than the £204.2m loss it made last year. Operating income was £228.2m, down slightly from £236.5m last year – although operating costs shrank for £222.8m, down from £262.9m last year. Capital reserves fell to 13.4 per [...]
Deutsche Bank head of retail calls for executive bonuses to be waived for second year running if results stay poor August 17, 2016 One of Deutsche Bank's key management members has urged that the executive team's bonuses be waived if the German lender continues to perform poorly. Retail bank head Christian Sewing has suggested the bank must place its investors concerns first, even if it means the upper-most management forgoing an annual sweetener for the second year running. [...]
Treasury committee chair Andrew Tyrie calls for prompt review on RBS share sale August 17, 2016 The chair of the Treasury Select Committee has today written to the National Audit Office (NAO), seeking a swift review on previous advice given on the government's sale of RBS shares. Andrew Tyrie has sent a letter to Sir Amyas Morse, comptroller and auditor general at the NAO, asking for the Morse's department to take a closer [...]
Make £££ interest on top current accounts this year August 17, 2016 Savers have been dealt a double whammy of blows this month. The Bank of England cut interest rates from their already-record low of 0.5 per cent down to a paltry 0.25 per cent, which is likely to have an impact on the already poor levels of interest paid on savings accounts. The 0.5 level was considered [...]
Santander UK braces itself for bumpy road post-Brexit vote, as it considers what to do in a world of lower for longer interest rates August 16, 2016 The chief exec of the UK division of banking giant Santander has warned the UK economy slowed noticeably in the run up to June's Brexit vote, and it was unlikely to get rolling again any time soon. In the company's half yearly report, Nathan Bostock wrote that the slowdown in the UK economy was expected to continue [...]