Net lending to businesses falls further

Recently released figures have suggested that net bank lending to businesses in the UK continued to fall in the month of May despite the fact that the recession is now over and the economy is meant to be getting back on its feet. Since the onset of the global credit crisis there has been a lot of concern over lack of lending by banks to businesses in the UK, and this is something that many thought would result in the recession being more prolonged than it otherwise may have been.

The recent figures were released by the Bank of England, and showed that net bank lending in the month of May from banks to businesses had fallen. However, it was also noted that the rate at which banks were writing off bad loans had fallen. The central bank also noted that the demand for borrowing by smaller and medium sized businesses remained subdued, which may have contributed to the falling figures.

According to figures net bank lending to businesses has been falling on a month by month basis since December of 2008, although there was a slight respite in November of last year, when net lending by banks to businesses saw a modest increase. There are concerns over the amount that lenders are now having to pay to borrow themselves, and it is thought that these costs could end up being passed on to corporate customers.

The data came from the recent Trends in Lending report from the central banks, and report noted: “The intensification of market concerns over fiscal sustainability in a number of countries at the start of May resulted in heightened volatility and a reduction of liquidity in funding markets.”

Tags: bank, corporate customers, england, Business_Finance, Central bank, Banking Services

New Banking Act comes in

The Bank of England is to get new and improved powers under the new Banking Act, which is due to come into force soon, according to a recent report. Read more

Tags: wider impact, enhancement, officials, Troubled Asset Relief Program, regulatory framework, banking act, Banking Services, stop banks

Warning issues over bank fraud committed by phone

Consumers are being warned to be careful about calls that they receive claiming to be from someone at their bank, stating that this is a common way for fraudsters to get information from accountholders and use it to commit fraudulent transactions. Read more

Tags: police, bank fraud, police authorities, doubt, losses, Banking Services, Advance-fee fraud, Highlands

RBS announced higher number of branches to open on Saturday

The Royal Bank of Scotland, which also owns NatWest, has recently announced that there will be a greater number of branches for both RBS and NatWest opening on a Saturday, which will provide consumers with increased ease and convenience if they need to visit their bank. Officials from RBS said that the decision to increase the number of stores opening on a Saturday was down to increased demand from its customers. Read more

Tags: Ulster Bank, Banking, Financial services, whilst, Banking Services, demand, royal

Surfers worry about using credit cards online

Almost half of UK internet users have reservations about using their credit cards to make purchases online, with a third feeling concerned about the security of web banking, according to new research.

Internet security firm F-Secure has found that 48 per cent of people are not confident that their card is secure when using it online.

Banking Trojans are rising sharply and can compromise security by stealing log-in details such as usernames and passwords by providing links to websites that are very close imitations of the genuine bank site.

Increasingly complex attacks are also emerging, says the company.

“Consumers need to be aware of threats when banking online, but that is not to say that they should not do it,” says Mikko Hyppönen, chief research officer at F-Secure.

In a recent survey, Abbey found that around 40 per cent of online shoppers want banks to monitor online transactions more closely to make the internet safer.

Tags: security firm, site, card, research internet, imitations, cent, Banking Services, online.banking trojans

New bank code introduced

Consumers are expected to be entitled to fairer treatment under the terms and conditions of a new banking code, it has been announced.

The new terms stipulate that spenders should contact their bank if they experience financial difficulty in a bid to make sure they work out a practical solution rather than just burying their head in the sand.

Both building societies and banks are also compelled to do more to assist customers who are struggling with debts by contacting those who may have been perceived to have fallen into financial trouble.

Angela Knight, chief executive of the British Bankers’ Association, said that the new code “gives strong commitments that banks will lend responsibly and will help customers who may be heading towards financial difficulties”

She added that the driver for change was the consultation process which shows what customers want and expect from their bank.

Meanwhile, young consumers are set to benefit from the Young People and Money scheme, set up to provide specialised debt advice.

Tags: practical solution, bank, Banking Services, debts, young consumers, specialised debt advice, Business Finance, consumers

Opening joint account requires ‘utmost trust’

Couples considering opening a joint bank account must be sure to have the “utmost trust” in one another, according to the British Bankers’ Association (BBA).

Brian Capon, head of media relations at the association, explained that, while joint accounts are still a popular choice for couples and can be useful for bill paying and saving money, those involved must be completely confident in the others’ integrity.

“Regardless of who pays the money in, if it is an account which allows either to sign, either of those people can draw money out and there is nothing to stop them drawing it all out or potentially running up an overdraft,” he said.

He added that consumers must do their research properly before going ahead with such an endeavour, to find out their rights and responsibilities.

Recent research by Abbey National found that 93 per cent of people with a joint bank account used it for paying household bills, while 83 per cent used it for shopping and 72 per cent to pay for holidays.

Tags: Abbey National, utmost trust, british bankers association, research, integrity, Banking Services, couples, Opening

More Brits banking online

Britain is becoming a nation of internet bankers, with new figures showing that we are becoming more comfortable with sorting out our finances online.

New research, carried out by Lloyds TSB, shows that over two thirds of us do the majority of our banking on the internet.

This is a huge leap when compared to 2005, when just 18 per cent of Britons said most of their banking was done online.

Despite the common perception that the internet is the plaything of the young and not well used by older people, Lloyds found that, when it comes to banking, the opposite is true.

A staggering 70 per cent of people over the age of 50 said that they prefer to do their banking online, while those aged between 18 and 25 are the least likely to manage their finances in this way.

“The growth of internet banking is phenomenal and this year is set to break records,” said Anita Hockin, head of internet at Lloyds.

“This popularity isn’t surprising given the convenience of banking online. It’s possible not only to check your balance, but also to pay bills, set up standing orders and direct debits and move money between accounts at the touch of a button.”

Lloyds’ research found that of the ten per cent of people that do not bank online, the main reason given was that they do not feel the need.

Tags: majority, research, Banking Services, online, growth, Technology Internet, head