Digital challenger Atom Bank starts mortgage lending

Link: http://www.telegraph.co.uk/business/2016/12/06/digital-challenger-atom-bank-starts-mortgage-lending/

Date: Tuesday 6, December 2016.

Media: The Telegraph

• What happened?

Digital-only challenger bank Atom has started to offer residential mortgages, in the latest attempt by Britain's first smartphone based lender to take on the high street banking giants.

Atom Bank, which is backed by investors including famous fund manager Neil Woodford and Spanish bank BBVA, has launched a range of loan products through independent mortgage advisers, including for self-employed borrowers, first time buyers, new builds and shared ownership. It also plans to start offering buy to let mortgages soon.

• Whom and where it affects?

This innovation not only affects to the customers of Atom Bank, but also to new people interested in making investments.

• What sort of public ir private institutions are involved?

This news affects to a serie of public and private institutions, among them we can highlight: the famous fund manager Neil Woodford and the spanish bank BBVA.

Atom Bank wants to generate greater competition against the most important banks of this industry as Barclays, HSBC, Lloyds, Royal Bank of Scotland and Santander UK; through the offer of products and services more attractive to the customers. 

• Why is it important for Banking and Finance?

This new application affects positively the economy of this bank, generating greater offers and sales of mortgage loans increasing, therefore, the competition amog its rivals.

Atom Bank has been a bank created with a vision of the future totally different to the rest. Through your application allows you to obtain a loan to finance your home the same day.

• What do you think will be the consequences in the foreseeable future?

Atom Bank is a good choice for people interested in making future investments. It offers a new banking vision, allowing customers to make numerous money transactions through its application. Those operations that we find complex, such as a mortgage, make them simple operations.

This bank has broken the schemes that have existed until now, offering a new vision of finance.

Key words: Atom bank, mortgage, loan, application, BBVA.

Bank overdraft cap could be re-examined, says FCA

Link: http://www.bbc.com/news/business-37845849

Date: 03/11/16

Media: BBC

What happened?

The news explains how the overdraft cap affects to the accounts and the charges and if it should be a limit or not.

Whom and where it affects?

This theme affects to the banks and to the customer of the bank.

What sort of public or private institutions are involved?

The institutions implicated in this news are the FCA, CMA.

Why is it important for Banking and Finance?

It is important because if you charge more to the customers, they will consume less.

What do you think will be the consequences in the foreseeable future?

If the institutions puts a limit, the costumers will be benefited. If not, the banks will continue putting the limit and earning more money.

Key words: overdraft, charge, FCA, CMA, loans, fees.

Origin Capital signs property finance deal with Morgan Stanley

Link: Origin Capital signs property finance deal with Morgan Stanley

Date: Monday 5, December 2016
Media: The Irish Time

                                                                                           

What happened?

The agreement will enable Origin to provide higher loan-to-value (LTV) funding for projects across a wide variety of asset classes, and also to compete for larger transactions.

Whom and where it affects?

Origin Capital, a Dublin non-bank lender, and Morgan Stanley is an American multinational financial services corporation. 

This affects all irish entities who need funding

What sort of public or private institutions are involved?

The institutions involved are Original Capital and Morgan Stanley

Why is it important for Banking and Finance?

It’s the main alternative of traditional banking lending. Irish businesses, as borrowers, are desperately seeking funding solutions. However, banks, “the traditional lenders”, don’t give them answers.

What do you think will be the consequences in the foreseeable future?

The agreement will enable Origin to provide higher loan-to-value (LTV) funding for projects across a wide variety of asset classes, and also to compete for larger transactions.

In this case, we can see how disintermediation is produced. The traditional banks will be replaced by non-bank financial institution.

Key words: Transactions, Lending, Dublin, Irish businesses

CUEB gathering on ethical future of Co-op Bank

Link: CUEB gathering on ethical future of Co-op Bank

Date: 7 November 2016

Media: Co-operative News

What happened?

The problem is that members and customers asking if the organization still has future as a leading ethical brand in the world.

Whom and where it affects?

To the members and customers.

In UK.

What sort of public or private institutions are involved?

The Co-operative Bank and The Customer Union for Ethical Banking (CUEB).

Why is it important for Banking and Finance?

Because every time the customers are more awareness the money that they are investing. So they are concerned or want to know more detail about the way in which institutions invest your money.

What do you think will be the consequences in the foreseeable future?

We believe that ethical banking sector will continue to grow, because customers are increasingly more aware of how the Banks use your money.

Key words: Save Our Bank, Ethical Consumer, crowd-funding, The Customer Union for Ethical Banking (CUEB), Ethical Policy.

Warns on UK household debt

 

Link: Bank governor Mark Carney warns on household debt

 

Date: 30 November 2016

Media: BBC News

What happened?

The governor of the Bank of England, Mark Carney, has given a warning about the high level of debt in UK households.

In particular he said that consumers were borrowing more on their credit cards and other unsecured debt.

Whom and where it affects?

It affects mainly England but its consequences can be derived in the rest of Europe.

What sort of public or private institutions are involved?

The Bank of England.

Why is it important for Banking and Finance?

Because the Bank's Stability Report showed that the overall ratio of household debt to income was 133% in the second quarter of 2016. However the Bank said that was high by historical standards, although it was not as high as in the financial crisis.

What do you think will be the consequences in the foreseeable future?

In principle none, since the figures are inferior to those of the world crisis, but taking into account the weight of England in the world economy would have to be cautious.

Key words:

Household debt, borrowing, credit card lending, Stability Report.

Royal Bank of Scotland fails stress test

Link: Royal Bank of Scotland fails stress test: Bank of England

Date: Nov 30, 2016, 03.24 PM

Media: The Economic Times

What happened?

Royal Bank of Scotland fails stress test, what are designed to see if the sector can weather a global recession and crashing house prices. So, it is the worst prepared among Britain’s lenders for another financial crisis. It is revealed of The BoE with its latest stress test realized on Britain’s top seven banks.

Whom and where it affects?

It affects directly to London and to Royal Bank of Scotland.

This new also affects to Barclays and Standard Chartered, another two banks of England, but they had taken steps to strengthen their capital positions,

What sort of public or private institutions are involved?

Institutions public or private that are involved are The BoE ( Bank Of England), Royal Bank of Scotland, Barclays and Standard Chartered, HSBC (Hongkong and Shanghai Banking Corporation), Lloyds Banking Group, Nationwide Building Society and Santander UK.

Why is it important for Banking and Finance?

Because if entities overtake stress test, they are well positioned face to a possible global recession and crashing house prices in financial global market.

What do you think will be the consequences in the foreseeable future?

We think that the consequences in the future are to receive an enormous bailout and a new capital-raising plan.

Key words:

UK Banks, Stress test, Royal Bank Of Scotland, Recession, Lloyds Banking Group, HSBC, Brexit

ATMs easy target for hackers

 Date:  December 4, 2016 

Media:  The Financial  Express

Link: ATMs easy target for hackers, say experts 

What happened?

ATM hacking attacks have affected many countries in the recent past. Using a malware, some hackers groups have cracked the security systems, forcing the machines to dispense huge amounts of cash.

Whom and where it affects?

These attacks have damaged a bunch of countries around the whole world, affecting any ATM user.

What sort of public or private institutions are involved? 

This happening involved a lot of institutions, since public governments to  private security companies.

Why is it important for Banking and Finance? 

Because it`s a  drastic weakness of the financial system which creates a feeling of fear,  vulnerability and unknown future.

What do you think will be the consequences in the foreseeable future?

ATM will improve their security systems or will be replaced soon by the mobile payments.

Key words: Hack, weakness, ATM, government, security

Words T5

Bond

A bond is an instrument of indebtedness of the bond issuer to the holders.

Spanish translation: Bono

Examples:

• ‘Since 1989, the worst year for the aggregate bond market was 1994 (-2.9%)’.

Found in:  http://www.financialsamurai.com/the-case-for-buying-bonds-living-for-free-and-other-benefits/ 

• If you invest in bonds, your money will be unavalaible until the due date.

Broker

A broker is an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor, a reputable forex broker should have rules, programs or services to protect the integrity of the market

Spanish translation: Corredor de bolsa

Examples:

• ‘Two former Deutsche Bank corporate brokers have been sentenced to one of the longest prison terms possible for the crime of insider trading in the UK. As US financial market participants walk free in the streets managing their own "home office" money, Martyn Dodgson and Andrew Hind will be rotting in a Wandsworth prison cell (among the worst reputed of England's prisons) for up to four and half years for what the judge called "persistent, prolonged and deliberately dishonest behavior." As Bloomberg reports, the group, including three other defendants, formed part of the FCA’s biggest insider-trading investigation dubbed Operation Tabernula’.

Found in: http://www.zerohedge.com/news/2016-05-12/deustche-bank-brokers-jailed-after-prolonged-persistent-bad-behavior-biggest-insider

• ‘When it comes to buying a home or renewing a mortgage term, many financial experts recommend using a mortgage broker to help find the best mortgage rate and terms. The reason is that mortgage brokers work for you – not the bank (even though they’re paid by the lender and not the client) – and can leverage their large network of lenders to access the most favourable mortgages based on their clients’ needs’

Found in: http://boomerandecho.com/mortgage-brokers-gone-bad/

Customers

A customer is an individual or business that purchases the goods or services produced by a business. Attracting customers is the primary goal of most public-facing businesses, because it is the customer who creates demand for goods and services.

Spanish translation: Clientes

Examples:

• ‘Customers are also likely to make purchases with their own money, or the money given to them by others who know them personally’.

Found in: https://www.entrepreneur.com/video/286000

• ‘Customers are often grouped according to age, race, sex, ethnicity, income level and geographic location all go into a customer's demographic profile’.

Found in: http://westernweekender.com.au/2016/11/dont-forget-existing-customers/

Investor 

A person who puts money into something in order to make a profit or get an advantage.

Spanish translation: Inversor 

Examples:

• ‘As an investor, watch for the dangers of over-consumption and lifestyle creep. The Siegels, especially Jackie, have no sense of when to stop spending their money and it eventually takes its toll.’ 

Found in: http://blog.wallstreetsurvivor.com/2016/11/01/9-incredible-finance-documentaries-make-better-investor/

• ‘A common complaint I hear a lot of from would be investors is how to start investing with a small amount of money. Most people don’t have a few grand laying around to put into the market and so they just sit on the sideline instead, thinking that $100 won’t matter in the long run. [...] You don’t need thousands to get started down the path of financial freedom. In fact, in one case, you can start out with just $10!’

Found in: http://www.moneysmartguides.com/investing-with-a-small-amount-of-money

Financial Statements 

Financial statements are reports prepared and issued by company management to give investors and creditors additional information about a company's performance and financial standings. This is the fundamental purpose of financial accounting – to provide useful financial information to users outside of the company.

Spanish translation: Estados Financieros 

Example:

• ‘The Australian financial reporting (financial statements) landscape continues to evolve as a result of changing expectations from investors, regulators and the government. On the one hand, there are increased calls from investors for cutting the disclosure clutter in financial statements and tailoring financial statements to better tell the story. However, on the other hand the accounting standard setters are requiring additional disclosures including those in the new accounting standards (namely leases, revenue and financial instruments)’. 

Found in: http://accounting-simplified.com/financial/statements/types.html

Words T4

Deflation

In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation
rate). Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy. This allows one to buy more goods and services than before with the same amount of money.

Spanish translation: Deflación

Examples:

• ‘For example, in a deflationary economy, a computer that sells for $1,000 today might carry a price tag of $990 next year. Or, if you buy a car for $20,000 today, you might be able to buy a better car for $20,000 next year.’

Found in: http://www.bankrate.com/finance/investing/5-ways-to-outlast-deflation-1.aspx

• ‘Deflation is different from disinflation as the latter implies decrease in the level of inflation whereas on the other hand deflation implies negative inflation.’

Found in: http://economictimes.indiatimes.com/definition/deflation

Interest rate 

Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Spanish translation: Tasa de interés

Examples:

• ‘The Swiss government ran a negative interest rate policy in the early 1970s’.

Found in: http://www.investopedia.com/terms/n/negative-interest-rate-policy-nirp.asp

• ‘Interest Rate in the United States averaged 5.83 percent from 1971 until 2016, reaching an all time high of 20.00 percent in March of 1980 and a record low of 0.25 percent in December of 2008.’

Found in: http://www.tradingeconomics.com/united-states/interest-rate

Profit

Financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity.

Spanish translation: Beneficio

Examples:

• ‘Samsung doesn't need to forfeit all profits from several products to Apple’.

Found in: http://money.cnn.com/2016/12/06/technology/samsung-apple-supreme-court/

• ‘Credit Suisse lowers profit targets and steps up cost cuts’.

Found in: https://www.ft.com/content/8b5a733c-bc5c-11e6-8b45-b8b81dd5d080

Negative Interest Rates

Words T2

Bank guarantee

A bank guarantee is a guarantee from a lending institution ensuring the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank covers it. A bank guarantee enables the customer, or debtor, to acquire goods, buy equipment or draw down loans, and there by expand business activity.

Spanish translation: Aval bancario 

Examples:

- 'The Minister explained that bank guarantees had initially been imposed on enterprises registered with the Ministry in order to safeguard worker rights.'
Found in: http://m.gulfnews.com/news/uae/government/smes-excused-from-bank-guarantees-starting-october-2016-1.1867358

- With a bank guarantee you can cover performance and payment obligations.

Banker Blanket Bond (BBB)

This is an insurance for the bank to cover against the losses which might happen due to criminal act/ dishonest act carried out by employee. Usually a bank can choose to insure a specific employee like a bank manager. It can also choose to insure itself so that any prospective employee who joins the bank and takes up any position is
automatically covered by the insurance rules. Criminal acts like robbery and forgery by bank employee are covered under this insurance provision.

Spanish translation: Póliza Global Bancaria

Examples:

-  ‘The key policies are professional liability insurance (otherwise known as errors and omissions or professional malpractice insurance); directors' and officers' liability insurance; bankers blanket bond fidelity/crime insurance; and an umbrella commercial general liability policy.’

Found in: United Nations Office for Project Services accountability framework and oversight policy (Annual session 2008), page 4.

-  ‘Any organization that is involved in the provision of financial services to third parties needs to consider Bankers Blanket Bond insurance.’  

Found in: http://www.willisfinexglobal.com/fi_bankers_blanket.html

Individual Savings Account (ISA)

A type of investment account in the UK in which the tax on income is lower than usual, and there is no tax on profits made from an increase in the value of shares

Spanish translation: Cuenta de ahorro individual.

Examples:

-  ‘Your full allowance can be saved in one of our cash ISAs or invested in our stocks and shares ISA.’

Found in: https://www.triodos.co.uk/en/personal/ethical-isas/

-  ‘The Innovative Finance Isa sounded so promising. You would earn decent
interest when the stock market is volatile and other savings returns are
at rock-bottom — and all within a tax-free wrapper.’

Found in: http://www.thetimes.co.uk/article/the-unloved-child-of-the-isa-family-5mxvb50wv 

Overdraft

The amount of money you owe to a bank when you have spent more money than is in your bank account; an arrangement that allows you to do this.

Spanish translation: Descubierto

Examples:

-  ‘A decision by the competition regulator not to recommend a cap on excessive overdraft charges could be re-examined, the Financial Conduct Authority says.’

Found in:  http://www.bbc.com/news/business-37845849

-  I had to arrange an overdraft to pay for the car.