Bankers’ bonus rules have led to higher fixed salaries, making losses difficult to absorb in event of a downtown, warns Bank of England December 15, 2015 Regulations surrounding bankers' pay, particularly the EU bonus cap, have led to fixed salaries representing a higher proportion of total pay packets, meaning financial institutions are less capable of reacting to a downturn, the Bank of England has warned today. In its fourth quarterly bulletin for 2015, the Bank of England pointed out that not being able [...]
Former Barclays chairman Sir David Walker joins London blockchain startup SETL December 15, 2015 A former Barclays chairman and City veteran has joined a London-based fintech startup underpinned by the blockchain in another major signal that the technology is gaining traction in the banking world. Sir David Walker, who chaired Barclay between 2012 until earlier this year, will chair SETL, a blockchain-based payment processor and settlement company. Walker is a veteran of the banking world [...]
Bank of England: UK households can handle an interest rate hike December 15, 2015 British households are well placed to handle an increase in interest rates, the Bank of England said today. The Bank’s annual survey of 6,000 households compiled by NMG consulting found households were “in a slightly better position to cope with an increase in interest rates than they were a year ago”. The survey revealed that if interest [...]
Government advisers back calls for an investigation into ex-HBOS directors December 14, 2015 Two independent government advisers have backed calls for ex-HBOS directors to be investigated by the regulator. Last month the Financial Conduct Authority (FCA) and the Bank of England’s Prudential Regulation Authority (PRA) released a report into why HBOS failed. Iain Cornish and Stuart Bernau told the Treasury Select Committee they supported the conclusions that Andrew [...]
UK small businesses aren’t prepared for foreign exchange volatility if the Federal Reserve raises rates in December December 14, 2015 UK SMEs are unprepared to deal with currency volatility if the Federal Reserve raises rates in December. While 88 per cent of small business owners said they understood the potential impacts of a US rate rise on currency markets, 70 per cent felt their business needed to be better prepared to deal with exchange rate [...]
Bank of England’s Minouche Shafik will not vote to hike interest rates until wages go up December 14, 2015 UK rate-setter Minouche Shafik has said today she will not vote to lift interest rates from record lows until wage growth picks up. The member of the Bank of England’s nine-strong monetary policy committee said “the rate of wage growth seems to have levelled off again in the most recent data”. But there could be [...]
The government’s buy-to-let stamp duty increase will cost landlords the equivalent of 11 months’ rental income December 14, 2015 George Osborne's hike of stamp duty on buy-to-let properties could cost landlords the equivalent of 11 months' income, new research has suggested. The Countrywide Lettings Index suggested that the three per cent rate will mean a 0.2 per cent drop in yields – the equivalent of 11 months' income, when you take into account borrowing costs. Those [...]
Getting onto the housing ladder is £2,300 a year cheaper than renting, says Santander December 14, 2015 First-time buyers could save £2,300 a year by getting on the property ladder compared to renting, according to research by Santander Mortgages. The average monthly rent in the UK is currently £995 compared to monthly repayments of £805 for the average first-time buyer household, meaning buyers could save £190 a month, the lender said. In [...]
Treasury to pave way for tighter control of the buy-to-let market December 14, 2015 Regulators are expected to consult on the buy-to-let mortgage market this week, as they pave the way for the next salvo on the booming sector. George Osborne has committed to launching a consultation before the end of the year on handing the Bank of England new powers to apply rigorous rules to the buy-to-let market. [...]
KPMG in firing line over HBOS as MPs call for investigation December 14, 2015 MPs are calling for accountancy giant KPMG to be investigated for its role in the collapse of HBOS, branding its auditing practices a failure. Andrew Tyrie, chairman of the influential Treasury Select Committee, is urging the accountancy regulator, the Financial Reporting Council (FRC), to reconsider the need for a probe into the “big four” accountant. Tyrie [...]