Ahead of the Chancellor’s Budget set to be published on March 16, there is a lot of speculation that he may announce other measures to cool down the buy-to-let property market. I don’t think he will need to: the market will cool down pretty rapidly once the regulatory changes that are coming for banks are understood by buyers. Admittedly, that will take a while. This article is for those who want to stay ahead of the game.
A small step for the ECB, a big step for eurozone banks could be one way of looking at a recent announcement by the European Central Bank that it is widening the array of financial instruments that it is accepting as collateral for its monetary operations.
The biggest question that is still unanswered after the 2007-2009 financial crisis is: why has growth been so slow? Compared to previous recessions, both in the US and in Europe, the rebound has felt more like an extension of the crisis rather than like a proper recovery, as in previous cases.
Almost two years ago, economist Andrew Smithers warned that US companies themselves were endangering the recovery. Little has changed since then, but public awareness of the problem is increasing, and with it, hopes that a solution is around the corner.
By Patrick Selley
I once attended a speed awareness course, and everyone in the room was asked to give a reason for why drivers habitually break the speed limit. From the range of answers given, I was surprised that no one gave the only real reason.
Bank shareholders hoping that profits will rise rapidly in the quarter ahead are likely to be disappointed.
The various constraints placed on banks after they were saved from bankruptcy at the cost of increased social inequality and poverty will limit the financial institutions’ earnings.
The European Central Bank’s long-awaited quantitative easing (QE) programme will not actually do much to lift the eurozone from economic stagnation and deflation, a strategist warned.
Banks still have to deal with the consequences of their excesses, which brought on the financial crisis. Their reputation is in tatters, fines are slapped on them almost daily and regulation controls almost their every step.
But their plight doesn’t stop here. The biggest challenge they’re facing is slowly becoming obvious – and it could change the industry forever.
The link between European banks and sovereign risk has weakened following regulation to establish the eurozone’s banking union, according to recently published research by rating agency Scope Ratings.