Link: https://www.theguardian.com/business/2017/sep/26/uk-personal-bank-deposits-growing-slowest-rate-2009
Date: 26th Sep., 2017
Media: The Guardian
·
What
happened?
UK personal
bank deposits are growing at slowest rate since 2009 because households are saving a bit less each month. Rather than borrowing more, as growth in personal deposits has slowed recently,
alongside a slowdown in growth of consumer credit borrowing.
·
Whom and
where it affects?
It affects
British depositors, high banks and the market in the United Kingdom.
·
What sort
of public or private institutions are involved?
Central Bank
of UK (slowdown in growth of consumer credit borrowing), UK Finances (annual
growth in personal deposits with high street banks fell to 2.2% in August),
retailer´s market (growth in retail sales volumes rose by 1% in August).
·
Why is it
important for Banking and Finance?
This news let
the banks know how is the behavior about their customers. If they knew all
mentioned before they could take decisions to try to reduce risks.
·
What do
you think will be the consequences in the foreseeable future?
The spending
power of British consumers is likely to come further under pressure from
inflation, with the Bank of England forecasting the consumer price index (CPI)
to peak above 3% in October. The CPI measure of inflation stood at 2.9% in
August.
Key words: Retailer, Customer, Inflation, Savings, Deposit.
The bank of England believes that Theresa May’s Brexit negotiation progress as well as the Budget last month are both giving a small extra boost to economic growth.
ReplyDeleteBusiness investment growth remains “modest” and consumption will remain “sluggish”, the Monetary Policy Committee said, but extra support is now being offered by these political changes.
This is a news item from December 2017.
Link: https://www.google.es/amp/www.telegraph.co.uk/business/2017/12/14/budget-brexit-progress-have-boosted-economy-says-bank-england/amp/
As this news says, it can be observed that the English citizens because of the uncertainty in which they live as a result of the BREXIT and of the rise of the prices due to the increase of the oil, and therefore the fall of the real wages, have caused bank deposits to be reduced.
ReplyDeleteIn addition, personal deposits in banks and loans were reduced and the pound is weaker.
This set of facts, can make banks limit the amount of money to families due to lack of liquidity., Increase interest rates for consumer loans since demand has decreased, among others.
Therefore, the Central Bank will have to take measures to encourage the consumption of the loans and prevent people from withdrawing the money from the bank because otherwise they will be significantly affected due to the lack of liquidity and drastic reduction of income.