Black_Adder
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http://www.bloomberg.com/news/artic...n-easy-target-for-politicians-before-election
The instincts of a number of folk here (Mr Burgess in particular) appear to be on the money as regards this being a political issue for the election.
There is a sting in the tail of the article - the author opines that it is bluster on the part of politicians and that .. nothing will actually happen.
This unfortunately, is close to my view for a number of reasons:
1. The paradox of bank profitability is by increasing Net Interest Margin - up go loan rates - down go deposit rates
2. Richie Boucher thinks the consumers are dopes (we are as we don't do protest)
3. There is nothing to fear from any meaningful competition as what we need is a massive new entrant or a mutual Building Society (remember them)
4. The Central Bank main focus is keeping Banks strong (see Point 1)
5. The politicians are happy that the Credit Unions have an interest cap but it is impossible apparently for bigger boys. (The solution is competition not price rules)
6. Politicians are likely to be exposed on large loans which explains the lack of coherence from them. (Note to B Burgess - seek declaration of borrowings)
The instincts of a number of folk here (Mr Burgess in particular) appear to be on the money as regards this being a political issue for the election.
There is a sting in the tail of the article - the author opines that it is bluster on the part of politicians and that .. nothing will actually happen.
This unfortunately, is close to my view for a number of reasons:
1. The paradox of bank profitability is by increasing Net Interest Margin - up go loan rates - down go deposit rates
2. Richie Boucher thinks the consumers are dopes (we are as we don't do protest)
3. There is nothing to fear from any meaningful competition as what we need is a massive new entrant or a mutual Building Society (remember them)
4. The Central Bank main focus is keeping Banks strong (see Point 1)
5. The politicians are happy that the Credit Unions have an interest cap but it is impossible apparently for bigger boys. (The solution is competition not price rules)
6. Politicians are likely to be exposed on large loans which explains the lack of coherence from them. (Note to B Burgess - seek declaration of borrowings)