Finance forum: Banks and banking products

Banks are businesses in every way. They’re engaged in preserving savings and administering credit. They’re fundamentally important economic actors –both for the present economy and financial markets. On one hand, they connect the deposits market with the credit market. On the other hand, they’re the primary providers of financial products. They offer services and products ranging from savings to capital investments.

The UK-EU equivalence challenges explained

Posted on 01.04.2021

With all the fuss about Brexit and trade negotiations seemingly coming to an end, one sector was almost completely ignored: financial services. London was, without a doubt, one of the major financial hubs of the world. That position is now in serious jeopardy, largely due to equivalence issues. And the EU does not seem to be in any rush to lend a helping hand to the UK. What is equivalence? Generally speaking, equivalence refers to one country’s rules being the same as the other&rsq ...

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Where to put your savings in a zero-interest environment

Posted on 23.03.2021

Fixed-income assets don’t pay as they once did and income investors have to proactively manage their savings to boost returns. Simply looking for the highest returns isn’t the only criteria to keep in mind. The pandemic has reminded us how important it is to be able to readily access our funds. And sacrificing a bit on returns is often a reasonable tradeoff for better liquidity. Let’s look at the options UK investors and savers have available. Instant access saving accoun ...

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How negative interest rates will affect your advisory

Posted on 16.03.2021

If recent developments at the Bank of England are anything to go by, financial advisors are about to have one more thing to worry about: negative interest rates. The UK might be heading into negative interest rates in the near future after the Bank of England’s Andrew Bailey told building societies and banks to be ready for it. While the success of the vaccination program helped the BoE delay negative rates implementation, it may happen if the economy does not recover as expected after the ...

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NatWest Allocates £3.2bn to Cover Bad Loans

Posted on 22.02.2021

NatWest Group reported a loss for the year 2020 to the tune of 351 million pounds. The firm reported that it had set aside 3.2 billion pounds to compensate for possible bad loans due to the pandemic. The bank also announced that it will start paying dividends to its shareholders again. Setting aside money for bad loans A total of 3.2 billion pounds was set aside as reserve funds by the bank. Setting aside money for bad loans is a precautionary measure NatWest has decided to take in light of th ...

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Ulster Bank Announces Closure of Republic of Ireland Business

Posted on 22.02.2021

Ulster Bank, the third-largest bank in Ireland, has announced it will be closing its operations in the Republic of Ireland. The announcement was made by its parent company, the NatWest Group, on Friday. The bank’s operations in Northern Ireland will continue. History The bank was founded in 1836 in Belfast and opened its first branch in Dublin in 1862. Since then, it has proudly served the people of the region. As of today, it employs over 2,500 people in the republic. Impact on Norther ...

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Barclays Continues Dividend Payouts Despite Profit Struggles

Posted on 19.02.2021

On Thursday, Barclays announced its annual earnings report. The bank reported a profit of 1.53 billion pounds in the year 2020, which is 38% less than the profit it brought in in 2019. The profit has exceeded analysts’ expectations and surprised many who were expecting poorer results owing to the effects of the pandemic last year.  In the fourth quarter alone, Barclays reported a profit of 220 million pounds despite lockdown measures affecting businesses during that quarter. Analysts ...

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HSBC Targets Wealth Management in Search of Growth

Posted on 15.02.2021

In its quest to improve its financial position, HSBC is set to target the wealth management niche for future growth. The bank announced last week that it is increasing its focus on the Asian market and believes wealth management in the region can provide a great boost to its bottom line. This comes after a poor performance during the course of the COVID pandemic. The struggling bank HSBC layed off 35,000 workers during the COVID pandemic last year. These workers formed 15% of their total workf ...

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Bank of England Holds Interest Rate at 0.01%

Posted on 10.02.2021

Last week, The Bank of England came out with a positive outlook on the economy, holding the interest rate at 0.1%. There were rumours of a negative interest rate, but experts believe such a move would not be ideal at the moment. While negative rates will definitely encourage lending, they may come across as a rather desperate move at a time when the economy might well recover without such drastic measures. Thanks to the vaccination programme's increasing success, the eco ...

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UK Regulators Scrutinize Buy Now, Pay Later Firms

Posted on 09.02.2021

Firms like Klarna offer shoppers the ability to pay for items in installments or even defer payments for up to 30 days. Major country-wide retailers now offer these services, hoping to attract more younger customers. And it’s working. Buy Now, Pay Later services saw a fourfold increase over the past year. However, the Financial Conduct Authority (FCA) has decided to regulate these as they could lead to the accumulation of massive consumer debts.  Concerns over looming debt growth Th ...

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