It appears that the UK banks may have a few more challenges ahead. The UK’s Chancellor of the Exchequer has now announced the UK Government’s plans for the UK banks. These plans do not make happy reading for many of the UK banks, who are still struggling to survive the global capital recession.
The UK Government blueprints to reform the financial regulatory regime has been a disappointing read to many in the UK banking sector. The opposition parties in the UK have also been similarly unimpressed. Some of the UK banks are likely to have to substantially increase their capital base. This increase in capital requirements may be bad news for consumers who are trying to gain personal loans or business loans, because the impact may be that the bank has less capital available for lending.
Although the UK banks and the opposition parties may be unimpressed, the public at large in the UK may feel pleased that some action at least appears to have been taken.