Wider focus of speciality banks increases margins

Large banks that have been able to adopt internet plans as well as expand into financial services l...

Large banks that have been able to adopt internet plans as well as expand into financial services look well placed going forward, despite fears caused by peaking interest rates. Mick Brewis head of the American department at Baillie Gifford cautions that as the economy is slowing down, there could be an increase in bad debts and credit problems which could impact the banking sector. "I think bad debts have been so low in recent years they are bound to get worse at some point." Rupert Della Porta, senior fund manger at Aberdeen Asset Management says: "What really kills the stocks is inve...