Co_op Bank Freezes Lending
Published / Last Updated on 27/05/2013
Co-op Bank Freezes Lending.
During a review of its banking section Co-op have stopped lending to new businesses. Co-op have stopped business loans to new businesses as it is in discussions with regulators on how much is needed to be kept in reserve.
Lending to retail consumers is unaffected. Co-op Bank is to try and raise capital to meet requirements. This comes after an announcement by the Bank of England saying that UK banks needed to raise their capital reserves by £25bn within the next year.
Our View - It is for Co-op to decide what sector it can lend to and what markets it wishes to be involved in given that it must comply with both UK and EU regulations on capital adequacy. It is very common for pension and insurance companies to 'dip' in and out of market sectors when it chooses by increasing or decreasing premium and rates. That said, we are suprised the financial regulator, the Financial Conduct Authority has not kept a closer eye on banking groups given the banking collapses of 2008 and the credit crunch.
During a review of its banking section Co-op have stopped lending to new businesses. Co-op have stopped business loans to new businesses as it is in discussions with regulators on how much is needed to be kept in reserve.
Lending to retail consumers is unaffected. Co-op Bank is to try and raise capital to meet requirements. This comes after an announcement by the Bank of England saying that UK banks needed to raise their capital reserves by £25bn within the next year.
Our View - It is for Co-op to decide what sector it can lend to and what markets it wishes to be involved in given that it must comply with both UK and EU regulations on capital adequacy. It is very common for pension and insurance companies to 'dip' in and out of market sectors when it chooses by increasing or decreasing premium and rates. That said, we are suprised the financial regulator, the Financial Conduct Authority has not kept a closer eye on banking groups given the banking collapses of 2008 and the credit crunch.