2 signatures were missing from the EU Fiscal Compact, UK and Czech Republic were the 2 out of 27 EU leaders who didn’t sign the new treaty, enforcing budget discipline and aiming to prevent huge debts and potential consequential bailouts. The ‘fiscal compact’, signed before any fiscal / transfer union or any devalue/ leaving, will now to go before national parliaments.
3 key driver variables for house repossession are the debt service ratio, the proportion of mortgages in negative equity and unemployment rate, according to an economic model which uses both national and regional data sources. The model, being used to influence government policy, the Bank of England and at least one major UK bank, demonstrates that even moderate rises in mortgage interest rates makes an impact.
£735 a year more is the payment that Halifax mortgage account owners are facing following rate hikes on May 1, going from 3.5% to 3.99% it will affect 850,000 customers.
£200m from Merlin banks and £400m from dormant bank accounts , which Big Society Capital used to set up as a social investment wholesaler in the support of a market growth for social investment. With social as well as financial returns, they are now looking to multiply the launch funds.
£2.8bn was paid over to the government in a combination of interest, fees, corporation tax and loan repayments by UKAR; who manages the closed mortgage businesses of Bradford & Bingley and Northern Rock Asset Management. Assisting the increased profits, by 145% to £1.09bn, was last year’s repossession of 8,800 properties. So far, £3.1bn payments have been made from the ‘bad bit’ (NRAM) towards bailout loans.
£3bn capital requirement is the latest challenge facing the UK’s biggest mutual, Co-op which has seen its Somerfield acquisition sales slipping 2.4%, faced £700m costs with the integration of Britannia Building Society and now the possible requirement, to sign off the Lloyds deal, which will see it transform to a financial service dominated company.
£18bn has been wiped from the market value of HSBC following financial regulations introduced after the banking crisis. CEO Gulliver said the Government’s new banking levy and suggestions that lenders hold enough cash to absorb a loss of up to 20% of their balance sheets would cost it 2.8 billion US dollars (£1.8 billion) in 2012; with equivalent to 17% being wiped off its market value.
£20bn, underwritten by the government, as the National Loan Guarantee Scheme (credit easing), for the benefit of small business cheaper loans has had Brussels demand that the Treasury force banks to pay a minimum amount to participate. HSBC is contemplating withdrawing because of concerns of over exposure to itself because its lending is mostly out of customer deposits unlike wholesale banks such as RBS and Lloyds Banking Group.
£31bn is the amount borrowed by UK banks from the ECB’s second round of three-year loans. The 1% Central Bank’s trillion-euro Long Term Refinancing Operation was the most interesting to Lloyds Banking Group who took €13.6bn, Barclays had €8.2bn, RBS and HSBC split €18bn with a further 796 banks and financial institutions turning to the ECB for a total €529.5bn. The first phase of the ECB’s three-year loan programme helped boost market sentiment, as banks used the funding to refinance debt although the overnight deposit facility only earns an interest rate of 0.25% it is therefore the hope that some of the money being injected into the banking system will start filtering down to the real economy, in the form of easier funding.
2012 Budget is 21 March, a day of more fuzzy numbers.
(Image and Article credit: Copyright SUF)