Chancellor George Osborne has made it perfectly clear; he sees no reason to inject more funding into the UK banking system. The British Banker’s Association is standing firmly behind him and commented on his remarks, saying: “UK banks were well placed to weather any financial problems that may arise I the future.” Osbourne comments are in response to a recent report from the New Economics Foundation (NEF).
Additionally, the BBA said: “UK banks have already put in the work to rebuild their business and exceed the international standards for capital and liquidity.”
When asked about the report, Osbourne replied with absolute, frankness, saying: “I am certainly not expecting and have no indication at all that any British bank needs any further government support.”
The head of finance and business as the NEF, Tony Greenham, discussed reform in the banking system was needed for the future. He said: “Urgent reform of the banking system ensures that bailed out banks are not allowed to repeat their failures.”
The surface industry has seen fears of a new crisis ever since Ireland announced last week a new package of support measures for the country’s banks. With the storyline of the Anglo Irish Bank debacle still fresh in most people’s minds, fears of a crisis should come naturally.
The bailout to rebuild the banking system in Ireland is ending up costing the country about 43 billion pounds. Of that, around 25 billion pounds is going straight to the Anglo Irish Bank.
Osbourne commented on the recent bail out of the Ireland banks, and said the British banking system is “much more stable.”