The United Kingdom is putting pressure on its banks to reward deposits

The UK's Financial Conduct Authority (FCA) on Thursday called a meeting of key executives of the four biggest British banks to discuss concerns about… Widening gap between rewards offered for savings Citizens and interest applied to loans, EP reports.

According to the British press, the British regulatory body is expected to hold a meeting tomorrow with senior executives of HSBC, NatWest, Lloyds and Barclays, after the Treasury Committee of the House of Commons in the UK Parliament questioned the matter. “Pessimistic” returns for savers on their deposits in the context of sharp increases in interest rates.

In this way, the FCA and executives will discuss how cash savings perform and how banks communicate with their customers about rates, sources familiar with the meeting agenda told the Financial Times. Which may lead to a “letter of provision” Or a group of sector obligations.

“We believe there is more value to be offered to consumers. We are not happy with some of the savings rates A source familiar with the FCA’s position said: “The lowest we see, and we want banks to support customers… and for people to be able to make informed decisions.”

However, a banker contacted by the newspaper indicated that the sector already exists I signed the Mortgage Letter last week In a move organized by the Treasury Department to help homeowners with the high cost of their loans, adding that “it seems that they are now thinking about something similar with regard to savings.” The average five-year fixed mortgage rate today surpassed the 6% interest rate for the first time since November, following the Bank of England. It will raise interest rates to 5% at its June meeting The highest level in 15 years to combat inflation.

See also  Free returns have expired and not just for its cost

Specifically, the average five-year fixed mortgage rate was 6.01% on Tuesday, according to financial information service Moneyfacts. about him Mortgage costs have risen since November And last year, when interest rates rose sharply following Finance Minister Kwasi Kwarteng's mini-budget fiasco.

In letters to Barclays, HSBC UK, Lloyds Banking Group, NatWest and the Financial Conduct Authority, the parliamentary committee expressed concern that banks' savings rates “remain too low”, especially on instant access savings accounts. Despite continuous increases in interest rates, with a reference rate of 5%. Likewise, in the letters sent, the Treasury Committee also noted that major UK banks reported a Strong growth in earnings and interest margins Net in the first quarter In this way, in its correspondence with the authorities, the Committee asked whether banks consider their savings rates to provide “fair value” to customers and whether user inertia will be exploited.

Mortgage deferral

At the end of June, the UK government announced an agreement with major banks and building societies to provide citizens with a series of relief measures and facilitate the repayment of their mortgage loans in the face of the increasing impact of rising prices. , including an introduction by A Moratorium for at least 12 months Before making seizures for non-payment of mortgage.

“Anyone will be able to talk to their bank or mortgage lender,” Jeremy Hunt, head of the British Treasury and UK Finance Minister, explained at the time. Without any impact on your credit history. Likewise, Hunt said those people “harmed” by their inability to pay their mortgage will be able to change the loan to pay interest only or extend the term of the loan “and, if they wish, return to their original mortgage agreement within (the next) six months.”

See also  53% of Spanish companies have promoted digitization in human resources

At its meeting in June, the Monetary Policy Committee of the Bank of England decided to raise the reference interest rate for its operations by 50 basis points, to 5%, which is equivalent to 5%. Highest level since September 2008 In a more aggressive decision than expected, it means extending the current sequence of increases in money rates to thirteen consecutive meetings.

Leave a Reply

Your email address will not be published. Required fields are marked *