Chris Dillow 

Is banking fixed?

Chris Dillow

Chris Dillow
Is banking fixed?

Is the banking system fixed? Two recent developments suggest not. One is the complaint that banks haven’t passed on the recent rate rise to savers – which suggests that the industry isn’t yet so competitive as to give customers good deals. The other is that bank share prices have fallen in response to Turkey’s financial crisis: the sector is down almost 9 per cent from its May peak while the All-Share index has fallen only 1.5 per cent. This implies that UK banks’ exposures to global risks – albeit indirectly via loans to other banks which have lent to Turkey – are still significant.

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