German bank becomes latest global lender to target staff in post-pandemic cost reductions
Deutsche Bank is to cut 3,500 jobs, making it the latest global lender to target employees as part of post-pandemic cost reductions, amid a drop in profits.
The German bank said that while it had made progress on a €2.5bn (£2.1bn) cost-cutting programme that it first announced in 2022, it still needed to save €1.6bn of that total, meaning thousands of staff had to go.
Continue reading...Regulator says bank failed to properly implement Financial Services Compensation Scheme
HSBC has been fined £57m by the Bank of England’s financial stability arm for failing to protect customer deposits in the event of a banking collapse.
It is the second-highest fine imposed by the Bank’s Prudential Regulation Authority (PRA) and reflects the seriousness of the failings, the watchdog said. The highest fine was £87m, imposed on Credit Suisse last July.
Continue reading...While some banks and building societies scrap system, others report increase in usage by customers
While some banks are scrapping passbook savings accounts amid suggestions they are past their sell-by date, other providers have reported an increase in their usage as people turn to cash to help them manage the cost of living.
Newcastle building society said that in 2023 it issued about three times as many passbooks as it did in 2021, and that it is getting new customers on the back of decisions by rivals to axe them.
Continue reading...Biggest reduction since December 2021 will allow 1tn more yuan to be released in form of new loans
China’s central bank has announced a surprise cut to the amount of cash that banks must hold in reserve, hoping to boost the lending available to households and businesses as policymakers try to steer the economy through a fragile recovery.
Pan Gongsheng, the governor of the People’s Bank of China (PBOC), said on Wednesday that the reserve requirement ratio would be cut by 0.5% from 5 February, the deepest cut to the rate since December 2021. The move will allow about 1tn yuan (£110.8bn) to be released in the form of new loans.
Continue reading...Lenders forecast biggest quarterly increase in missed repayments on credit cards and loans since 2009
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Britain’s biggest high street lenders expect the sharpest rise in defaults on unsecured lending since 2009, according to a Bank of England survey, as households come under growing pressure amid the cost of living crisis.
The figures from Threadneedle Street show banks expect a marked rise in the number of people who fail to meet repayments on credit cards, loans and other forms of unsecured borrowing over the next three months.
Continue reading...FCA to examine whether consumers have been charged inflated prices for loans on new and secondhand cars
Millions of drivers could be in line for a payout, it has been claimed, after the UK financial watchdog opened an investigation into whether consumers had been unfairly charged inflated prices for loans on new and secondhand cars.
The Financial Conduct Authority said on Thursday that it had decided to examine whether a compensation scheme was needed to deal with alleged large-scale mis-selling in the £50bn-a-year motor finance sector.
Continue reading...Campaign at leading universities such as Oxbridge and UCL warns lender it will miss out on top talent if it finances fossil fuels
Hundreds of students from leading UK universities have launched a “career boycott” of Barclays over its climate policies, warning that the bank will miss out on top talent unless it stops financing fossil fuel companies.
More than 220 students from Barclays’ top recruitment universities, including Oxford, Cambridge, and University College London have sent a letter to the high street lender, saying they will not work for Barclays and raising the alarm over its funding for oil and gas firms including Shell, TotalEnergies, Exxon and BP.
Continue reading...The former chancellor is one of four partners at Robey Warshaw, which did not specify how much he would collect
George Osborne will collect a share of a £28m payout for his work as partner at the City advisory firm Robey Warshaw.
The former chancellor, who orchestrated the austerity drive after the financial crisis, is one of four partners at the Mayfair-based company which announced on Friday it would pay out a total of £27.98m to four men.
Continue reading...Kremlin threatens ‘serious consequences’ if there is an unprecedented seizure of Russian assets held abroad
The Kremlin has threatened Europe and the US with “serious consequences”, including tit-for-tat financial seizures or even a break in diplomatic relations, if Russian assets held abroad are given to aid the Ukrainian budget and war effort.
A spokesperson for Vladimir Putin told reporters on Friday that if the Biden administration and European leaders planned to seize Russian central bank assets believed to be in excess of $300bn (£236bn) that were frozen after Moscow launched its full-scale invasion of Ukraine in February 2022, they should “realise that Russia will never leave those who do it alone”.
Continue reading...UK lender is a major European funder of oil and gas projects and university has said it does not want to back fossil fuel expansion
Cambridge University could cut ties with Barclays after more than 200 years over the bank’s refusal to stop financing new oil and gas projects, according to the Financial Times.
It reported that Cambridge is looking for an institution with robust climate policies to manage “several hundred million pounds” in cash and money market funds – a mandate expected to cover more than £200m in assets and generate about £10m in fees a year.
Continue reading...Poll finds 28 of 30 economists expect central bank to keep cash rate steady at 4.35%. Follow the day’s news live
Good morning, and happy Tuesday.
I’m Emily Wind and I’ll be with you on the blog today – many thanks to Martin for kicking things off.
Continue reading...Treasury select committee highlights concerns over data privacy and increased possibility of bank runs
The idea of creating a digital pound should not even be considered until the UK government and Bank of England address concerns over data privacy and the increased risk of bank runs, a parliamentary committee has warned.
MPs on the Treasury select committee said that while it was true that the rollout of a central bank digital currency could trigger fresh innovation and competition in the payments sector, serious questions remained about whether the positive effects outweighed the risks and costs.
Continue reading...ANZ stands out as ‘laggard’ while Commonwealth Bank and Westpac have restrictions on facilitating bonds for fossil fuel clients
There is a growing gulf between the climate policies of Australia’s big banks, with some pledging to severely limit future financing for fossil fuel projects, while others have left the door open, according to an analysis of updated lending policies.
Part of the discrepancy lies in the banks’ approach to arranging bonds, which are used by companies to access financing along with, and sometimes instead of, a direct loan.
Continue reading...Consumers report problems using bank’s app on one of the busiest shopping days of year, Black Friday
Thousands of HSBC customers reported they were unable to access its online and mobile banking services on one of the busiest online shopping days of the year – Black Friday.
More than 4,000 customers said they could not access their accounts via the HSBC app on Friday, according to Downdetector, which tracks and collates website outages and complaints.
Continue reading...Consumer groups have long lobbied for institutions to crack down on scams by rejecting transfers if name and bank details of recipient don’t match
Australian banks have buckled under pressure and will do more to fight scams by introducing technology that will block customers from transferring money to some fraudulent accounts.
The banks had initially resisted calls – including from the Australian Competition and Consumer Commission (ACCC) and the Consumer Action Law Centre (Calc) – to block transfers if the name and bank details of the recipient did not match.
Continue reading...Zhongzhi, a wealth manager with links to China’s ailing property market, says it is ‘severely insolvent’
One of China’s biggest financial conglomerates with links to the country’s ailing property market has admitted a shortfall of nearly £30bn as it warned investors that it is “severely insolvent”.
Zhongzhi, an asset and wealth management company in China’s shadow banking sector, said its total assets amounted to 200bn yuan (£22.5bn) against obligations of up to 460bn yuan, in a letter to shareholders issued on Wednesday.
Continue reading...Rising interest rates have boosted profitability but are likely to limit demand and increase risk of bad debts, says central bank
The balance sheets of eurozone banks are showing “early signs of stress” after a rise in loan defaults and late payments by customers, the European Central Bank has warned.
Higher interest rates have boosted banks’ income and profits for the time being, the ECB said, but lenders are facing pressures from higher funding costs, worsening asset quality and lower lending volumes.
Continue reading...This blog is now closed
Birmingham says China ‘doesn’t appear to be acknowledging the facts’
Shadow foreign minister Simon Birmingham is speaking with ABC RN and is asked about sonar pulses from a Chinese warship that left one Australian naval diver injured.
The Australian navy and Australian defence force operates always with professionalism, and I’m confident that Australia’s version of events is a credible.
Continue reading...Employees in Albuquerque, New Mexico, and Bethel, Alaska, make rare move to organize staff in financial industry
Workers at two Wells Fargo bank branches are planning to launch unionization efforts on Monday in a rare move to organize staff at a financial services company.
Employees in Albuquerque, New Mexico, and Bethel, Alaska, said they would notify the National Labor Relations Board that they plan to hold elections to decide whether to unionize, the Wall Street Journal reported.
Continue reading...NS&I, Shawbrook and Tandem among providers to make reductions amid flurry of such moves
Savers have been urged to act quickly if they want to get the best returns on their money after a flurry of interest rate cuts on top-paying accounts.
This week NS&I reduced the rate it offers on its three-year green bonds from 5.7% to 3.95%, while Shawbrook, Tandem and Ford Money were among other providers making cuts.
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