Just reading Shaun Richard's excellent blog on this. Barlays is being forced to get up to a 3% capitalisation level. This means that it currently has loaned out £427 billion too much in loans.
That 0.6% growth we experienced in Q1 2013 took GDP up to £365 billion. Gives you an idea of the scale of the UK's private debt problem when a single major bank has loaned out more than a good quarter of growth and only holds 2% of that in deposits. This is an important insight into how banking really works, and why even this supposed drastic action by the Bank of England is a drop in the bucket.
The under-regulated banking sector is at the heart of the global economic crisis because it is their that the mad policies of free-marketeers are most perfectly implemented - and to be clear Labour have been as complicit in this as the Tories.
Even under the new levels set by the BoE Barclays only requires 3% capitalisation.
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Keep is seemly & on-topic. Thanks.