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21/10/2009
Bank Restructuring Needed, Says King
A rethink on how banks are structured is necessary, the Governor of the Bank of England has said.
Mervyn King warned regulation alone would not prohibit conditions which led to the international financial crisis.
He said large banks should split their activities so they did not view themselves as too big to fail.
The UK government has backed G20 proposals in increase legislation, however Mr King said moves should be made to limit "moral hazards".
He said large institutions should not assume them would be protected by the state if they indulged in more risky banking practices.
Mr King suggested banks had to separate 'bread-and-butter' services, from so-called casino banking.
"The belief that appropriate regulation can ensure that speculative activities do not result in failures is a delusion," he said.
"Never has so much money been owed by so few to so many. And, one might add, so far with little real reform."
Government should not stand-over risky investment banking activities, but instead only provide support to traditional services offered by high street banks, the governor proposed.
Speaking to Scottish business leaders last night, he said: "Encouraging banks to take risks that result in large dividend and remuneration payouts when things go well, and losses for taxpayers when they don't, distorts the allocation of resources and management of risk."
Mr King said their was no reason tax-payer bailouts should only be available to high street banks.
Tory Shadow Chancellor George Osborne described the speech as "powerful and persuasive".
"His analysis of how the government's system for regulating banks failed and how there has been 'little real reform' since is one I share," said Mr Osbourne.
(PR/BMcC)
Mervyn King warned regulation alone would not prohibit conditions which led to the international financial crisis.
He said large banks should split their activities so they did not view themselves as too big to fail.
The UK government has backed G20 proposals in increase legislation, however Mr King said moves should be made to limit "moral hazards".
He said large institutions should not assume them would be protected by the state if they indulged in more risky banking practices.
Mr King suggested banks had to separate 'bread-and-butter' services, from so-called casino banking.
"The belief that appropriate regulation can ensure that speculative activities do not result in failures is a delusion," he said.
"Never has so much money been owed by so few to so many. And, one might add, so far with little real reform."
Government should not stand-over risky investment banking activities, but instead only provide support to traditional services offered by high street banks, the governor proposed.
Speaking to Scottish business leaders last night, he said: "Encouraging banks to take risks that result in large dividend and remuneration payouts when things go well, and losses for taxpayers when they don't, distorts the allocation of resources and management of risk."
Mr King said their was no reason tax-payer bailouts should only be available to high street banks.
Tory Shadow Chancellor George Osborne described the speech as "powerful and persuasive".
"His analysis of how the government's system for regulating banks failed and how there has been 'little real reform' since is one I share," said Mr Osbourne.
(PR/BMcC)
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Ulster Bank has announced that improving exports and more consumer spending has led to an improving economy, despite yesterday's downgrading of Ireland's credit rating. Ulster Bank said today it was revising its forecasts for Irish economic growth in 2010 upwards, predicts average annual GDP growth of 1%, up from -0.5% previously.
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Northern Bank posts record annual results
The annual results from the Northern Bank have revealed pre-tax profits of £111m up 13% on the previous corresponding year-end figures. The results include a £19.9m profit in relation to the disposal of subsidiary company Northern Bank Insurance Services to Wealth Management Europe Holdings another subsidiary of National Australia Bank.
Northern Bank posts record annual results
The annual results from the Northern Bank have revealed pre-tax profits of £111m up 13% on the previous corresponding year-end figures. The results include a £19.9m profit in relation to the disposal of subsidiary company Northern Bank Insurance Services to Wealth Management Europe Holdings another subsidiary of National Australia Bank.
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Ulster Bank Announce New Vertical Bank Notes
Ulster Bank has announced the introduction of two new vertical polymer banknotes, which will enter circulation in 2019. The new £5 and £10 notes are based on the theme 'living in nature' and will feature Strangford Lough, Brent geese, Lough Erne, the Irish hare and Guelder-rose shrubs.
Ulster Bank Announce New Vertical Bank Notes
Ulster Bank has announced the introduction of two new vertical polymer banknotes, which will enter circulation in 2019. The new £5 and £10 notes are based on the theme 'living in nature' and will feature Strangford Lough, Brent geese, Lough Erne, the Irish hare and Guelder-rose shrubs.
20 August 2010
Recall Dáil For Bank Debate, Says FG
Fine Gael have urged the Government to recall the Dáil from its break to allow an emergency debate on the bank guarantee. The party's Finance Spokesman Kieran O’Donnell has this morning called for the Oireachtas to cut short its break in order to discuss the banking guarantee, which is set to expire on the same day that the Dáil resumes.
Recall Dáil For Bank Debate, Says FG
Fine Gael have urged the Government to recall the Dáil from its break to allow an emergency debate on the bank guarantee. The party's Finance Spokesman Kieran O’Donnell has this morning called for the Oireachtas to cut short its break in order to discuss the banking guarantee, which is set to expire on the same day that the Dáil resumes.
14 August 2009
Ulster Bank 'Says Recession Over'
The worst of the house-building downturn may have passed, says one of the top local banks. Ulster Bank's latest Quarterly Economic Review features commentary by their economist, Richard Ramsey . He said key indicators suggest the worst of the economic gloom is behind us and that the most serious phase of the house-building crisis has passed.
Ulster Bank 'Says Recession Over'
The worst of the house-building downturn may have passed, says one of the top local banks. Ulster Bank's latest Quarterly Economic Review features commentary by their economist, Richard Ramsey . He said key indicators suggest the worst of the economic gloom is behind us and that the most serious phase of the house-building crisis has passed.
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