UK 'on cusp' of second banking failure

Scott Sinclair
clock • 1 min read

UK banks are borrowing billions of pounds each month and may be forced to seek yet more support from the government, an economic think-tank warns.

The New Economics Foundation (NEF) says that by next year banks will face a £25bn funding gap after analysing Bank of England (BoE) data. According to its report, Where did our money go?, an estimated £1.2trn of state cash has already been pumped into the banking system. In late 2008, RBS and Lloyds had to be part-nationalised as they ran up huge losses during the credit crisis, while others including HSBC also benefited from cheap credit provided by the central bank. The NEF says there has been a "shocking" lack of information on how the money has been used. It adds new lending...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Trustpilot