Banks have Passed their Stress Test by Maximising Profits at the Expense of Savers
BY Nester - 2023-07-13
The announcement from the Bank of England that the major UK lenders could weather a financial meltdown fails to address the problems facing millions of households.
The UK's megabanks continue to maximise their profits at the expense of savers. By pushing up borrowing rates and keeping rates on saving deposits low they are creating a spiral of increased costs and reduced savings, which will drive up inflation.
Youness Abidou, CEO of Nester, commented: “Giving these megabanks a clean bill of health does not help an ailing economy where households throughout the UK are struggling to pay their day-to-day bills. The Bank of England stress test just hides the lack of transparency and unethical behaviour of the megabanks.”
“To say that the biggest banks are resilient enough to offer more help than in the last global crisis, 15 years ago, fails to understand the problem. If millions of mortgage
holders are forced to ask for help, they will lose their credit rating and be forced away from regulated financial services. This could create a bigger problem than it solves.”
“Instead of supporting the unethical approach of the large lenders, and pushing up their share price, the Bank of England should look at the role of independent financial businesses. These offer more transparent and fairer options for investors and borrowers.”
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