British-owned banks are being unfairly blamed for a contraction of sterling banking activity by foreign-owned institutions operating in the UK.<\/p>\n
Total sterling assets of UK-based banks grew by 8% in the year to December, down from 14% in the prior 12 months, according to Bank of England data. The 8% rise, however, conceals a 15% increase for domestically-owned banks offset by a 3% contraction in sterling assets of foreign institutions, which account for 34% of the amount outstanding.<\/p>\n
Foreign banks continued to expand their lending to the non-bank private sector last year, though at a slower pace than British-owned banks. The decline in their total sterling assets reflected a cut-back in lending to other UK banks – this in turn constrained the ability of British banks to extend new credit to households and firms.<\/p>\n
Of the 34% foreign share of total sterling assets, “other EU” banks account for 22 percentage points, “other developed countries” 7 pp and the US 4 pp. Last year’s contraction was due to a large fall in assets of banks from “other developed countries”, a category including Swiss, Canadian and Australian institutions, among others. Sterling assets of “other EU” banks grew by 7% during 2008, partly reflecting Santander’s acquisition – via Abbey – of Bradford & Bingley’s savings business. Icelandic banks are also included under “other EU” – their liquidation could affect future data.<\/p>\n","protected":false},"excerpt":{"rendered":"
British-owned banks are being unfairly blamed for a contraction of sterling banking activity by foreign-owned institutions operating in the UK. Total sterling assets of UK-based banks grew by 8% in the year to December, down from 14% in the prior 12 months, according to Bank of England data. The 8% rise, however, conceals a 15% […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2731","post","type-post","status-publish","format-standard","hentry","category-money-moves-markets"],"_links":{"self":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2731"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2731\/revisions"}],"predecessor-version":[{"id":5040,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2731\/revisions\/5040"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}