Fear over how the coronavirus will affect outstanding loans to companies struggling with the coronavirus pandemic could cost UK banks billions of pounds, claims a new report.
5:30 pm Bank of England
Coronavirus – Don’t fire people because of the Pandemic
As the effects of coronavirus change with almost bewildering speed, the new Bank Of England governor Andrew Bailey has asked firms to think twice before firing people because of the coronavirus pandemic.
FCA chief to be new governor of the Bank Of England
Andrew Bailey, chief executive Britain’s financial regulator, has been named as the man to take over from Mark Carney who is stepping down as the governor of the Bank Of England in March after six years in control.
Bank of England to set new climate tests for UK banks
In a world first the Bank Of England is set to order the UK financial system to undergo a new series of tests to establish their readiness to cope with problems brought on by climate change.
Interest rate rises could be sooner and higher
The Bank Of England has warned that interest rate rises could come sooner and be higher than expected.
For the time being the Monetary Policy Committee (MPC) has agreed to leave the rate unchanged at 0.5%, but said that rates would need to rise ‘earlier’ and by a ‘somewhat greater extent’ than they thought at their last review in November.Read More
Interest rates rise for first time in a decade
The Bank Of England has raised interest rates for the first time in a decade and governor Mark Carney has said the banks should pass the rate rise on to savers.
Base rate has been at a record low since August 2008 when it was slashed from 5.25% to the then record low of 0.5% as an emergency measure to stimulate the economy in the aftermath of the financial crisis.Read More
Bank Of England sets new rules designed to end bank bailouts
The Bank Of England has laid out strict new guidelines for the UK banking industry to deal with the consequences of any future financial crisis, avoiding the need for public funds to bail them out.
The Bank’s Purple Book outlines clearly what will happen if the 2008 financial crisis repeats itself and banks are in danger of collapsing.Read More
The Great Escape: Co-op Bank signs £700m rescue package
The Co-op Bank has signed a £700 million rescue package to prevent it being wound up under Bank Of England regulations.
The Manchester based bank has signed a deal with its existing investors who have agreed to swap their debt for a stake in the bank.Read More
Co-op Bank no longer up for sale
The Co-operative Bank is no longer up for sale with a rescue plan on the horizon.
The bank had put itself up for sale in February after it was unable to meet capital requirements for Bank Of England regulations.Read More
Co-op plans debt for equity scheme to avoid wind-down
The Co-operative Bank wants to strike a deal within two weeks to shore up its operation by raising £450 million to cover senior bonds due to mature in September.
Insiders have revealed the plan in which some of the bank’s existing investors will be asked to swap their bonds for shares at a loss.Read More