Displaying items by tag: finance

Thursday, 12 October 2023 20:22

India: bank agents steal money from customers

An exposé has shown that the Bank of Baroda made it simple and easy for its agents to steal money from customers’ accounts - and some of them did. The bank’s employees had linked unauthorised mobile numbers to accounts before uploading them onto the bank’s new mobile app. These numbers were of bank staff, managers, guards, their relatives, and bank agents in remote areas. Internal documents show that some of the bank’s agents withdrew tens of thousands of rupees from customers’ accounts. The bank’s head office has asked the managers concerned to do everything necessary to restore the money to the accounts. The  Reserve Bank of India (RBI) has ordered an audit, and has told the bank to stop registering new customers on its app.

Published in Worldwide
Friday, 06 October 2023 11:03

Metro Bank seeks to raise capital

When Metro Bank was launched in 2010,it was the first new high street bank in 150 years. Now, there are concerns about its future. The bank, which has around 2.7 million customers, is reportedly in discussions with investors about securing £250 million in equity funding and refinancing £350 million in debt to strengthen its balance sheet. The issue is that it is operating at the edges of its capital requirements, meaning the amount of assets held by the bank that can be sold off at short notice if it faces unexpected losses. This move has rattled investors, causing the bank's share prices to plummet by over 25%. Despite these challenges, the bank stated that customer deposits are secure, and there is no indication of imminent collapse. In any case, the Financial Services Compensation Scheme (FSCS) ensures that customers' funds would be returned within seven working days in the event of the bank's dissolution. While the bank has faced difficulties in the past, it hopes to secure the necessary funding to navigate its current financial situation and continue serving its customers.

Published in British Isles
Friday, 04 August 2023 05:26

Bank of England Interest rate rise

On August 3rd, the Bank of England’s base rate rose again to 5.25%. The last time it was 5.25% was in 2008. The Bank expects inflation to fall below 5% in the final quarter of 2023, while the government pledges inflation will be 5% or below by 2024. The Bank's increase influences the cost of borrowing, making mortgages more expensive, while at the same time offering greater returns on savings accounts. The theory is that raising interest rates makes it more expensive to borrow money, so people have less to spend, reducing demand and inflation. Meanwhile, rising interest rates, higher energy costs and squeezed consumer spending have weighed on retailers with Wilko homewares now on the brink of collapse, putting 12,000 jobs at risk. They have filed a notice of intention to appoint administrators after failing to find enough emergency investment. Wilko has 400 UK stores. See

Published in British Isles

Christian Aid have cut ties with Barclays over the bank’s investments in oil and gas industries. The bank is known to be one of Europe’s leading funders of fossil fuels. Sarah Edwards from Just Money Movement said, ‘I think charities, companies, churches, and individuals are all having to think now more about what our money is doing, and the kind of world that our money is shaping. I think that's a really positive step. And we're really pleased that Christian Aid have done this. Money shapes the kind of world we want to see. Banks don’t just sit on our money when it is in a current or savings account, they invest it, they lend it, and use it in different ways. Some of those ways we might not be happy with.’ Barclays said it will set an ambition to become net zero by 2050, as addressing climate change is an urgent and complex challenge.

Published in British Isles
Friday, 02 June 2023 13:22

Food price cuts and theft

As food prices soar the government is discussing plans for supermarkets to introduce price caps on basic food like bread and milk to limit the rising cost of living. A voluntary agreement with major retailers could see price reductions but there are no plans for a mandatory price cap. The idea of a freeze on basic food items is said to be at the ‘drawing board stage’. Supermarkets will be allowed to select which items they would cap and only take part in the initiative on a voluntary basis. The rate of inflation can be calculated in various ways, but the main measure is the Consumer Prices Index which tracks the prices of everyday items in an imaginary ‘basket of goods’. Expensive food may overtake energy bills in the cost-of-living crisis. Security tags are being fitted to expensive food, coffee jars are replaced with dummies, and some stores are limiting the number of items on shelves to reduce theft. See

Published in British Isles
Friday, 17 March 2023 05:14

Chancellor’s Budget

Chancellor Jeremy Hunt’s budget scrapped the lifetime allowance on tax-free pension contributions. There were other key measures: Free 30 hours per week childcare is expanded to cover children from nine months to two years old. Fuel duty is frozen for another year and government help with energy bills is extended by three months. Funding will be provided for 50,000 places on a voluntary employment scheme for disabled people, called Universal Support. Tougher requirements to look for work and increased job support for lead child carers on universal credit. More places on ‘skills boot camps’ to encourage over-50s who have left their jobs to return to the workplace. Defence spending and corporation tax will be increased. The economy is forecast to grow by 1.8% in 2024 and 2.5% in 2025 and Inflation is forecast to fall from 10.7% last year to 2.9% by the end of this year.

Published in British Isles
Friday, 17 March 2023 05:13

Christians say Budget fails the poor

Christian Labour MP Alex Cunningham said, ‘the budget lacks ambition to tackle the cost of living crisis and support those in need. There is nothing to deal with rising poverty. We need much more done for people at the bottom end of the income line. Above all we need to ensure food supplies are improved - we have already seen prices rise due to shortages. We must tackle these things in order to drive down inflation so that people get better benefits out of the money they have.’ The latest data from the Office for National Statistics reveals that 23% of adults in Great Britain are borrowing more money or using more credit. Policy Adviser for the Methodist Church, Paul Morrison, said that the Budget's number one priority should be to support the poor. People are experiencing destitution in the UK. Destitution should not happen in a country as wealthy as ours.

Published in British Isles
Friday, 20 January 2023 05:04

USA: Debt ceiling danger

At the time of writing, 19th January America is about to hit their debt limit, meaning the government is not allowed to borrow any more money - unless Congress agrees to suspend or change the cap, currently almost $31.4tn (£25.4tn). Since 1960, politicians have moved to raise, extend or revise the definition of the debt limit 78 times - including three just in the last six months. But Republicans recently took control of the House of Representatives and are calling for spending cuts, raising concerns that politicians will delay acting this time - leading America to intentionally default for the first time in its history. Treasury Secretary Janet Yellen has estimated that special measures can buy time for the US until at least June, at which point the government will no longer be able to pay its bills. A true economic catastrophe - unpaid defence contractor payments, Social Security cheques, received by retirees and salaries of government employees, including the military, will all be affected.

Published in Worldwide
Thursday, 17 November 2022 21:46

Autumn Statement: tax increases for everyone

After a wild few months in the UK economy, the Government wants to raise more money to cover a big black hole in its accounts. Jeremy Hunt, the Chancellor, has said everyone must pay more tax. Meanwhile, a group of economists have questioned whether the ‘black hole’ in public finances must be filled with austerity and tax rises. They said that the £50bn hole entirely disappears if debts are calculated differently. When Rishi Sunak was chancellor two years ago, he used a different accountancy rule to arrive at a government debt figure. Changing it back to what it was before the 2021 Autumn Statement completely removes the black hole, according to the economists' analysis, and will put government debt back on a sustainable footing. Pray for Jeremy Hunt and all members of the treasury to be wise regardless of the accountancy rules they choose to follow.

Published in British Isles
Thursday, 17 November 2022 21:42

Autumn Statement: protecting the poorest

The Chancellor announced targeted payments to help with the cost of living. The national wage will jump from £9.50 to £10.42 an hour from April; help for energy bills will be extended, but less generous. There will be cost of living support for pensioners, the disabled, and those on low incomes. Means-tested benefits, including Universal Credit, and pensions will rise in line with inflation. Social sector rent rises will be capped at 7% in the next financial year. However, the cap on social care costs due next October will be delayed by two years. A ‘temporary’ 45% tax on companies generating electricity will be applied from January, and windfall taxes on oil and gas company’s profits will increase from 25% to 35% and extend until 2028. The NHS budget will increase in each of the next two years by an extra £3.3bn, and schools will receive £2.3bn extra in 2023 and 2024.

Published in British Isles
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