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The writer is the author of many city books and Wall Street
“Busy never doing, working all day.” Even if he is more known as a crooner than a bank parable, the Bing Crosby pattern is good for UK retail banks last year. By avoiding major blanks, riding the interest rate and work in the best-known interviewers, all listed in parts of parts of parts of divisions.
Prices of all three banks get worse, about closing a shameful discount on the book’s value, cutting the cost of capital and reducing the vulnerability of activists.
“Doing nothing”, of course, doesn’t know the difficulty of running a bank. These are the businesses of extraordinary complexity. Annual reports of large UK banks over 400 pages each have a weak financial instruments that set millions of digital and face transactions. The potential for error, person or otherwise. Employee incentives are high, transparency is low and industry culture is, we just say, an act of progress.
Its navigating is a success of himself and as indicated in industry history, cannot be given. The three cheers, then, for a good year safely loaded.
But there is no time for satisfaction. Last year, the UK base rates put around 5 percent sweet spot, which provides easy interest acquisition – the difference in loans – the rate charged for deposits. Here is dangerous. Between an adviceor investor, the temptation may be for planks to think that they are genius and forget that environmental business has made majority of heavy lifting.
Hubrants are not exactly rare in banking. In 2006, behind the boom conditions, HBOS and northern stones have grown their mortgage markage, which heals their own balance sheets. The following year, convinced that the scale is the key to global success, Barclays and RBs have entered a fierce war for the opposite Dutch Bank Abn Amro. Excessive bearing on self confidence is replaced with clear head analysis. The consequences, as we know today, harm.
What are the hazards of another blasting boardroom repair? Trigger points are not equal but there are three things looking for.
First, self-inflicted wounds. British banks are famous gaffe. Barclays’ Angry history Means that before 2022 it is forced by an expensive settlement as soon as it should admit to issuing regulates security. In 2023, Natwest’s former executive Dame Alison Rose was forced to quit After naming Nigel Farage in a conversation about Debansit. The car loans Incorrect sales Today passing through the courts in the UK can prove expensive, especially for lloyds market leaders.
Second, the lowest credit patterns. Low credit disadvantages are a factor of the results of 2024 and while there is no immediate hope of an acute increase, it should not be given. Geopolitical depression is an obvious threat but also the government’s restoration to lend more than supporting its growth strategy. Banking is the opposite of most industries, where more large numbers absorbs above and add margins. In banking, it usually means more lending and more dangerous.
High Street banks no longer participate in market principles such as one between barclays and natwests in the 1990s. “Number one of ’91” published the former and “of the Poo in ’92” answers the wasters later. But government pressure on funding growth, for example at home, carries a similar danger.
Third, diversity. The establishment of a credibility platform, variation by taking today is a choice, in theory at least.
However with their main bank bank business recently raised by mid-sellers – the barks and natwest bought banking such as excessive concentration.
Growing up to less regulated activities, for example private banking and asset management, perhaps more interesting. But while no business can stand, add a new activity that requires a variety of technology and complex technology with a risk of risk and risk management.
The planks want to do things and chief executives want to leave positions. But all three banks of UK street banks clearly inform plans for growth in organic development. They need to follow them and follow the next cronby line classical by “try to find many things that don’t do”.