Category Archives: Banking

Average rate on five-year fixed mortgage deal in UK climbs above 6%

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Rate is at highest level since last November, and average two-year fix is now 6.47%

A typical five-year fixed mortgage deal in the UK now has an interest rate of more than 6%, putting further pressure on borrowers who are hoping to buy a home or reaching the end of their existing deals.

Data from the financial information firm Moneyfacts shows the cost of a five-year deal for homeowners rose to 6.01% on Tuesday, up from 5.97% on Monday. It is the highest level since last November, after mortgage rates had been driven up by the mini-budget chaos of last autumn.

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Watchdog summons UK bank bosses to discuss weak savings rates

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Financial Conduct Authority to meet executives on Thursday as part of its investigation into savings market

UK bank bosses have been summoned to a meeting with the financial watchdog this week amid mounting concerns that they are profiting from rising interest rates by offering paltry savings rates to customers.

Executives from the big high street names Lloyds Banking Group, NatWest, HSBC and Barclays, as well as from smaller lenders, are due to attend a meeting at the Financial Conduct Authority (FCA) on Thursday to discuss concerns that savings rates are lagging far behind the soaring costs of mortgages and loans.

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Nigel Farage row: minister warns banks against closing accounts

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Tom Tugendhat asks Treasury to review whether banks are blacklisting those with controversial views

It should be “completely unacceptable” for banks to close accounts on “political grounds”, a Home Office minister has said, as Conservatives weighed in on a so-called freedom of speech row prompted by claims from Nigel Farage.

Tom Tugendhat, the security minister, was speaking in parliament after the culture secretary, Lucy Frazer, urged regulators to take action against banks that shut off access to people with controversial views.

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Major Commonwealth Bank outage prevents some customers from accessing accounts

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CBA says issue resolved without reporting cause, but advises delay in some payments as services brought back online

Commonwealth Bank suffered a major outage on Monday, with customers unable to access their accounts, including transfers and payments, for several hours.

Customers reported not being able to check their account balances or transfer funds in the Netbank app and some said they were unable to make purchases. Credit cards appeared unaffected at the time of reporting.

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Sydney CBD sees uptick in commuters as big banks lead push to return workers to offices

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City train stations at 70% of pre-pandemic capacity amid warnings of potential effects of bringing workers back full-time

Workers are returning to offices in inner Sydney as a handful of large companies, including big banks, tell employees to come back from their kitchen tables.

The corporate-led trend is observable in public transport usage figures that show a recent uptick in office returns. It marks a shift in working arrangements after Australians appeared to have largely settled into their new hybrid habits.

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Economists split over prospects of another rate rise ahead of RBA meeting

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Despite 11 hikes in the cash rate since last May, some forecasters think the central bank could still raise borrowing costs again

It’s Reserve Bank roulette time for another month with borrowers and pundits bracing for the potential of another rate rise surprise.

Since May last year, the central bank has lifted interest rates on the first Tuesday of each month, with only the January holiday break and a short-lived pause in April breaking the metronomic rise in mortgage pain.

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HSBC increases interest rates on some savings accounts

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Rises of up to 0.75 percentage points follow increases at First Direct

Customers of HSBC will receive a boost to their savings after the bank announced an increase to interest rates, as Britons enjoy some of the highest rates in more than a decade.

The lender is increasing rates on some of its savings accounts, with increases of up to 0.75 percentage points.

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Albanese government urged to push international banks to stop funding fossil fuel development

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Exclusive: Report claims Australia’s shareholdings in development banks has made it responsible for investing $828m in fossil fuel projects over five years

Australia’s shareholdings in three international banks – including the World Bank – has seen it responsible for investing $828m in fossil fuel projects between 2016 and 2021, according to a research report.

The World Bank, the Asian Development Bank and the Asian Infrastructure Investment Bank have collectively pumped $32.85bn into fossil fuel projects – almost entirely linked to oil and gas production or power generation – over the same period, the report says.

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UBS to make $35bn in Credit Suisse takeover – but lose $17bn in rushed deal

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UBS says it will absorb costs related to litigation, regulatory matters and liability adjustments in emergency rescue

UBS is in line to make an almost $35bn (£28bn) gain after its emergency takeover of Credit Suisse – but has said it will take a $17bn hit from costs related to the rushed rescue deal.

The Swiss lender has said it will make gains of $34.8bn after taking on Credit Suisse, based on an initial assessment of data until the end of last year, according to a regulatory filing. The accounting gain will be one of the biggest ever reported by a bank in a single quarter.

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Australian banks announce new anti-fraud platform to help quickly freeze scam payments

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Move adds to ‘arsenal of anti-scam initiatives’ as consumer rights groups call for laws to see banks reimburse victims

Australian banks have announced a platform that will help them act quickly to freeze money being sent to scammers by allowing the reporting of bank-to-bank scam payments in close to real time.

On Tuesday the Australian Banking Association announced the new Fraud Reporting Exchange (FRX) platform, which will facilitate the quick reporting of fraudulent payments as they are transferred to another bank. The move will boost “the likelihood that funds can be frozen and returned to customers”, the association said in a statement.

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UK ministers urged to intervene if Australian bank takes 100% of gas business

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Macquarie has option for all of National Grid gas transmission and metering despite tainted history of owning utilities

Ministers have been urged to intervene if the Australian banking powerhouse Macquarie pushes the button on a mooted £3bn deal to take full control of a vital part of the UK’s gas grid.

A consortium made up of Macquarie Asset Management and British Columbia Investment Management Corporation completed the acquisition of 60% of the equity in National Grid’s gas transmission and meter business in January, in a deal which valued the business at £7.5bn.

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Unlicensed ‘bank’ CEO’s Commons invite stokes access concerns

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Vulnerability of MPs’ groups to influence of private firms highlighted by appearance at blockchain inquiry

Fresh questions have been raised about private firms gaining prestige and access to MPs through all-party parliamentary groups (APPGs) after an unregulated “bank” with no UK licence gave evidence to an inquiry in the House of Commons.

The chief executive of Bandenia Challenger Bank spoke at an APPG inquiry into regulation in December, chaired by a Scottish National party MP, which was promoted using parliament’s official portcullis logo.

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UK mortgage lender to offer first 100% loans since 2008 crisis

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Skipton building society aims product at renters who cannot save enough for a deposit

A leading lender plans to launch a 100% mortgage aimed at would-be first-time buyers who cannot save for a deposit, the first since the 2008 financial crisis.

Standard home loans where the borrower does not have to put down a deposit used to be fairly commonplace but the last was axed in the wake of the financial crisis.

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US banking crisis: Warren Buffett says bosses should face ‘punishment’

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Billionaire investor believes ‘CEO and directors should suffer’ when banks they run get into trouble

The billionaire investor Warren Buffett has said executives who led the US banking system into crisis should face “punishment”, as the American economy grapples with the worst series of bank failures since the 2008 financial crash.

The owner of the investment firm Berkshire Hathaway said US bank directors “should suffer” when they run into trouble, adding that he was wary of most banking stocks because of “the messed-up incentives”.

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Labour criticised for giving global banks access to parliament

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Exclusive: HSBC and NatWest staffers seconded to shadow business secretary Jonathan Reynolds’s team

Labour has been criticised for giving global banks access to parliament after taking an HSBC staffer into its shadow business team, despite the financial giant coming under fire over its links with China.

One senior policy manager from HSBC has been seconded to the team of Jonathan Reynolds, the shadow business secretary, and has been given a parliamentary pass since February.

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Filipino activists appeal to British banks over region devastated by oil spill

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Environmentalists from the Philippines urge investors to avoid LNG projects which they say threaten the Verde Island Passage

Campaigners from the Philippines have urged British banks not to fund the expansion of fossil fuel use in their country. It follows a huge oil spill that threatened a globally important marine biodiversity hotspot.

Filipino environmentalists have travelled to the UK to meet representatives from Barclays, Standard Chartered and HSBC as part of efforts to stop the expansion of liquefied natural gas (LNG) power plants and terminals in and around the Verde Island Passage, a global marine biodiversity hotspot known for its whale sharks, corals, turtles and rich fisheries, which was badly affected by the oil spill this year.

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Opposition leader says no federal intervention needed – as it happened

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This blog is now closed.

Albanese added he is concerned about Assange’s mental health.

There was a court decision here in the United Kingdom that was then overturned on appeal that went to Mr Assange’s health, as well, and I am concerned for him.

It’s frustrating. I share the frustration. I can’t do more than make very clear what my position is.

… I think that the Assange case needs to be looked at in terms of what occurred, what the allegations are, and whether the time effectively that has been served already is in excess of what would be reasonable if it were proved that this had occurred.

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Trading in PacWest shares suspended amid fears of new US banking crisis

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Banks seek to calm markets as investors fear repeat of First Republic and SVB failures

[NEW]Trading in shares of the California-lender PacWest have been suspended after plummeting 42% amid wider fears about the health of the US’s regional bank sector.

PacWest had sought to calm markets on Wednesday and said it was in talks with several potential investors after its shares plummeted by as much as 60%. But the sell-off continued on Thursday and affected other regional banks.

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Climate protesters rework Spice Girls song to disrupt Barclays AGM

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Lyrics of Stop changed to ‘stop right now, no more oil and gas’ because of bank’s fossil fuel funding

Barclays’ annual general meeting has been disrupted by climate activists condemning the bank’s role as one of Europe’s largest funders of fossil fuels – including a choir singing a Spice Girls hit with reworked lyrics.

Dozens of activists from groups including Fossil Free London and Extinction Rebellion UK began their action less than five minutes into the meeting where its chair, Nigel Higgins, was addressing shareholders at the QEII Centre in Westminster, central London.

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HSBC rules out banking crisis as profits triple after Silicon Valley Bank deal

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Failure of four banks in six weeks is purely a sign of poor risk management, says chief executive

HSBC’s chief executive has denied the possibility of a fresh banking crisis, saying the failure of four banks in six weeks was a merely a sign of poor risk management, as the lender tripled its own first quarter profits to $13bn (£10bn) after its rescue of Silicon Valley Bank UK.

Noel Quinn’s comments came a day after JP Morgan stepped in to buy most of the collapsed lender First Republic in a $10.6bn takeover, as part of regulators’ efforts to draw a line under lingering turmoil across the banking sector.

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