The economic and financial crisis that hit the whole world in the recent years has left even the previously financially well-off countries to be staggering under the financial and economic burden. This is true even as the world economic situation has slowly been on the rise in the past few months. Even with the slow and steady economic rise, the economic and financial markets are still struggling to get up on its feet and get back to its former glory.
For the United Kingdom, this means that the financial institutions such as the banks have started to mobilize to be able to give aid in the economic recovery of the country. This is in the midst of the allegations that these financial institutions have not been doing their part in helping the country regain its former economic glory days. As a matter of fact, the reality is that the CEOs of six of the largest banks in the United Kingdom have actually requested to have a two month allowance to learn about the market of lending for businesses, as well as to be able to find methods of meeting whatever unresolved demands that might crop up.
Acting in conjunction of his role as the British Banker’s Association chairman, Stephen Green, PLC Chairman of HSBC Holdings stated in a letter to George Osborne, Chancellor of the Exchequer, dated last Friday that the banks have in fact become acquainted with the communal responsibility that they have to play to be able to provide support to the country’s road to economic recovery.
He added that they have established the need for a task force that will focus on the actions that the banks are taking to be able to provide more money to be put up for loans. They plan to do this whether or not the British government will be providing them with the support that is needed in this endeavour. Another thing that the task force will be doing is it will keep an eye out for ways that it can revive the securitization markets. It is through the said markets that the banks get their funding to be able to have the means to give a loan, at least prior to the financial and economic crisis.
This has all been met with scepticism and even criticism; especially after Lloyds Banking Group PLC and Royal Bank of Scotland and Group PLC, both partially owned by the state, report that they had a return of profit in the first half of the year. Other major banks in the country, including Barclays PLC, HSBC and the U.K. branch of Banco Santander SA of Spain, have also reported a sharp increase of their profits in that same fiscal period.
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