Banks recoverinng?
by Kirsty on Oct.09, 2009, under Uncategorized
It seems that financial firms could be recovering as a survey has shown that business volumes are growing for the first time in two years. In 3 months a 7% increase was reported. However some areas are still weak, which suggests that the recovery is going to be a long one.
Head of financial services consulting at PricewaterhouseCoopers, Andrew Gray says: “For the first time since June 2007, banks are experiencing an upswing in confidence, confidence is, in part, offset by concerns of further impairments and the impact of ‘tougher’ regulation.”
The UK’s five largest banks recently accepted curbs on bonuses agreed by G20 leaders at the recent Pittsburgh summit, and stronger rules on overall banking are likely to follow. Building societies were feeling downbeat about their prospects, partly because of difficulties with funding. However the satabilisation in the housing market did cause some cautious cheer.
It would seem that the main institutions are looking positive but for the average person, there is still a long way to go. It is hoped that a valuable lesson has been learnt from this financial crisis, and that is to only borrow what you can afford and for financial providers to only lend what they can afford and not to go mad in order to line some beurocrat’s pocket.
