Category Archives: Banking

Australian businesses selling essential goods and services to be forced to accept cash payments

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Treasury confirms cheques will stay in circulation until 2029 but then cease to be accepted as legal tender

Businesses selling essential goods and services such as groceries, medicines and fuel will be forced to accept cash from their customers unless granted a special exemption, under a government mandate to take effect from 1 January 2026.

In a move designed to taper the phase-out of cash and ensure those who rely on it can still use it for the near future, the federal government will require certain businesses to take cash payments. But others, including many small businesses, will be exempt from the measure.

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Banks could face levy for failing to meet ‘baseline’ services in regional Australia, Treasury proposal suggests

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Confidential report comes in the wake of Senate inquiry which highlighted ‘deficiencies in branch closure processes’ across regional areas

Australian banks would have to meet a minimum level of service in regional areas or contribute funding to bolster the number of branches and ATMs offered by other institutions, in a proposal put forward by Treasury.

According to a confidential report sent to bankers this week, seen by Guardian Australia, Treasury has outlined two proposals to better support the presence of in-person branches and ATMs.

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Reeves tells City regulator to encourage more risk-taking in financial sector

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New remit given to FCA by chancellor raises fears of a weakening of rules meant to avert another financial crisis

The financial regulator has been ordered to encourage more risk-taking across the City, raising concerns that the Labour government is in danger of watering down rules meant to avoid another financial crisis.

In an official “remit” letter addressed to Financial Conduct Authority (FCA) boss, Nikhil Rathi, the chancellor, Rachel Reeves, said regulations meant to protect consumers should not stand in the way of “sensible risk-taking” by investors and the wider financial sector, which includes banks, asset managers and insurers.

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Metro Bank fined nearly £17m for failure to monitor potential money laundering

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Problems were raised by junior staff three years before they were completely resolved, says FCA

Metro Bank has been fined nearly £17m by the UK’s financial watchdog for failings in its money-laundering controls over four years, in a fresh blow to the lender a year on from its near-collapse.

In a surprise announcement that also triggered the early release of Metro’s third-quarter results on Tuesday morning, the Financial Conduct Authority (FCA) said it had found shortfalls in the bank’s financial crime checks between 2016 and 2020.

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Boots says it will ‘draw lessons’ from research into links to slavery

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Report looked into donations to Nottingham universities by Jesse Boot, who expanded pharmacy chain

The high-street pharmacy Boots’s links to the transatlantic slave trade have been revealed in new research that shows how the proceeds of enslavement became entangled with British capitalism.

Jesse Boot, the son of the company’s founder, expanded the chemist with the help of banks and premises linked to slavery. He was not identified as involved in the enslavement of people, the trade of enslaved people or trade in goods made by enslaved people.

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Lloyds shareholders could take £1bn hit over car finance crisis

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Analysts forecast bank will have to halve £2bn buyback plan, as ex-boss of City regulator blames watchdog for crisis

Lloyds Banking Group could give almost £1bn less to shareholders this year as a result of the car finance crisis, analysts have said, as the City regulator’s former boss blamed the watchdog for the chaos.

The estimated size of a multibillion-pound compensation bill for motor lenders has grown after a shock court of appeal ruling last Friday, which said customers could not consent to motor loans that involved “secret commission” payments to brokers and car dealerships.

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Santander to cut more than 1,400 jobs in UK amid increasing automation

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News of redundancies comes as UK division delays publication of results after car finance court ruling

Santander is cutting more than 1,400 jobs across its UK business this year as part of its efforts to reduce costs.

The Spanish bank’s chief executive officer, Hector Grisi, confirmed the cuts as its UK division delayed publication of its latest financial results to consider the impact of an influential court ruling linked to commission on car finance.

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HSBC denies breakup plan as it launches $3bn share buyback

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London-headquartered bank says profits beat forecasts as it prepares to split eastern and western operations

The boss of HSBC has said moves to separate its eastern and western operations are not part of a plan to break up the banking group, as he announced a $3bn share buyback amid better-than-expected profits.

Georges Elhedery pushed back against rumours that a huge restructuring plan announced last week was a sign he was considering hiving off parts of the banking group, which had been under pressure to do so by its largest shareholder, the Chinese insurer Ping An. Investors last year rejected Ping An’s proposals.

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Lloyds backs Reeves budget plans despite mooted tax increases

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Bank expects ‘constructive, pro-growth agenda’ by chancellor next week and seeks to be part of it

Lloyds Banking Group has backed the Labour government’s forthcoming budget and played down the impact of any tax increases, which it said would probably be part of a “constructive, pro-growth agenda”.

The chief financial officer of the UK’s biggest mortgage lender, William Chalmers, said he would welcome a budget package that was consistent with government pledges to kickstart growth and investment in key areas such as energy, infrastructure and housing.

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Israeli airstrikes on Lebanon hit branches of Hezbollah-linked bank

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Strikes targeted Al-Qard Al-Hassan buildings in Beirut’s southern suburbs, south Lebanon and the Bekaa valley

Israel carried out a series of airstrikes on the southern suburbs of Beirut, south Lebanon and the Bekaa valley early on Monday morning, hitting buildings belonging to the Hezbollah-run banking institution Al-Qard Al-Hassan.

At least 10 airstrikes were carried out in the southern suburbs of the capital, with an entire building collapsing and a jet of fire streaming into the air in the Chiyah neighbourhood. A building close to Lebanon’s only commercial airport was also struck, video footage showing a smoke plume billowing while a nearby plane sat on the runway.

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UK interest rates to fall to 2.75% by next autumn, Goldman Sachs predicts

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Economists at investment bank say markets are underestimating likely extent of action by Bank of England

Interest rates are on course to fall to 2.75% by next autumn after the Bank of England reduces the cost of borrowing at each of its nine next meetings, a leading investment bank has predicted.

Economists at Goldman Sachs said that, according to their assessment of the long-term level of interest rates consistent with achieving the government’s 2% inflation target, markets were underestimating the likely extent of the action by Threadneedle Street’s nine-strong monetary policy committee (MPC).

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Commonwealth Bank says it has resolved duplicate transaction issue after funds wiped from accounts

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CBA says ‘the process to reverse these transactions has been completed’ and any fees charged will be refunded

The Commonwealth Bank says it has resolved the error which left customers’ balances lower than they should have been after the bank charged some transactions twice, and left some worrying about how they would buy essentials and pay rent.

The duplicates involved transactions from recent days and resulted in some people having their bank accounts overdrawn.

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Shoppers to no longer pay fees when using debit cards under new Albanese government plan

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Treasurer says uncovering ‘unfair’ practices also part of proposed surcharge revamp designed to give consumers better deal and cut small business’s costs

The federal government is preparing to ban debit card fees and instruct the consumer watchdog to investigate excessive card costs, as the unpopular system of transaction charges gets set for an overhaul.

The proposed changes would mean consumers no longer pay a fee when using their debit card to buy their morning coffee or make a major retail purchase. Credit card fees would still apply.

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Many cheered when banks eliminated ATM fees in 2017 – but now it’s a struggle to find one

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Bank-owned ATM numbers are down almost 60%, with many spots now taken by privately-owned machines charging about $3 per withdrawal

It is getting increasingly difficult to find an ATM and harder still to find one that doesn’t charge fees, prompting warnings that the push toward a cashless society is neither equitable nor wise.

Bank-owned ATM numbers are down almost 60% since 2017, according to regulatory data, with many spots now taken by third party-owned machines that typically charge about $3 a withdrawal.

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Labour to announce £10bn AI project in Northumberland backed by pro-Trump billionaire

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Stephen Schwarzman’s Blackstone Group will fund data centre bringing 4,000 jobs to north-east England

Keir Starmer is set to announce the creation of a £10bn AI datacentre, bringing 4,000 jobs to north-east England, which will be funded by a private equity firm run by a big Donald Trump supporter.

The prime minister is due to host chief executives in New York on Thursday, where he is trying to drum up interest in foreign investment into the UK. He will hail the investment in an “artificial intelligence datacentre” – due to be built in Blyth in Northumberland by Blackstone – as a “vote of confidence in the UK”.

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Co-operative Group returns to profit as almost £40m lost to shoplifting

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Mutual reports half-year pre-tax profit of £58m despite soaring wage bill and rising cost of theft at retail stores

The Co-operative Group has laid bare the impact of shoplifting as it said the cost of crime in its stores soared by almost 20% to £40m in the first half of the year.

The member-owned mutual has spent £18m so far this year on measures to protect staff in its food business, including rolling out body-worn cameras and fortified kiosks.

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Ex-NatWest CEO who left after Nigel Farage row to advise law firm

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Alison Rose appointed as diversity and inclusion adviser at leading firm Mishcon de Reya

Alison Rose, the former chief executive of NatWest, has taken a job as an adviser to one of the UK’s top law firms as she tries to return to the City after a career-damaging row with Nigel Farage last year.

Rose is joining Mishcon de Reya as a diversity and inclusion adviser, a role that will involve mentoring some of the firm’s partners. She will also work closely with the equity, diversity and inclusion committee at the firm, which is known for having represented Diana, Princess of Wales during her divorce.

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Santander to insist UK workers are in office three days a week

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About 1,000 of those affected work in London and 4,500 at the bank’s new Milton Keynes headquarters

Santander has joined the ranks of employers herding reluctant British workers back to the coalface, telling office staff they must turn up in person for at least three days a week on average.

While the bank’s back-office staff will still be able to work from home more regularly than before the pandemic, the minimum requirement now tips the balance in favour of the traditional workplace rather than home.

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HSBC on hiring spree to drive UK wealth division ambitions

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Exclusive: Europe’s biggest bank hopes to double UK arm of its wealth and private banking operations

HSBC is recruiting hundreds of bankers to serve rich clients in the UK as it looks to head off growing competition from British rivals and take a larger slice of the wealth management market.

Europe’s biggest bank is hoping to fortify the UK arm of its wealth and private banking operations by bulking up its team of relationship managers, who offer bespoke services and advice to rich clients in exchange for lucrative fees.

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Banks warned over denying sex workers business accounts

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FCA gives detailed guidance to lenders after hearing lack of access could lead to ‘significant harm’ for individuals

The City regulator has warned UK banks over denying accounts for sex workers, after hearing that a lack of access to business banking could lead to “significant harm” for individuals.

The Financial Conduct Authority (FCA) said that while banks said they were able to provide accounts for the adult entertainment industry in theory, they were often denying or shutting down business accounts in practice.

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