Issue Drill Down: Feature Articles
RBS: rumored plans to exit Tesco JV may be ill advised
RBS's recent ventures, including its partner acquisition of ABN Amro, seem to have left it with a shortage of cash that not even a GBP12 billion rights issue will cover. RBS hopes to make an additional GBP4 billion from the sale of its insurance units, and is even rumored to be selling its share in Tesco Personal Finance. However, given the strength of this business, the move has to be questioned.
7 May 2008
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Retail banking: Abbey grows UK market share in the face of slowing mortgage market
Despite the slowdown in mortgage lending, which is at its lowest level in terms of new mortgages since January 1999, Abbey has increased its share of net lending in the UK mortgage market to 15.9%, up from 4.9% a year ago. This signals the bank's intention to grow its market share while many of its competitors struggle amid the credit crunch.
6 May 2008
Principle Insurance: a newly FSA authorized Sharia compliant insurer
Principle Insurance has become the UK's first Sharia compliant independent insurance company to be formally authorized by the FSA. The insurer will operate in accordance with Islamic laws, through which it will target the UK's estimated two million Muslims in the home and motor markets. In this way, the company is demonstrating a different approach to segmenting the insurance markets.
2 May 2008
CBA: considering contrary mortgage strategy
Despite the fact that its major rivals have recently raised their rates, Commonwealth Bank is expected to keep its rates constant. Such a strategy could be used as part of an overall effort to increase its market share. Commonwealth Bank now has the lowest standard variable rate of the five largest Australian banks, and is set to leverage its size and trusted brand name.
30 Apr 2008
NAB: receives approval for US regional bank acquisition
NAB's move to acquire US regional bank, Greater Western, comes as the Australian bank looks to expand its agricultural business into the US market. However, there are short-term concerns over the profitability of Greater Western, with the US heading towards a recession and the current state of the banking industry amid the sub-prime mortgage crisis.
28 Apr 2008
Bank of England: offering UK liquidity improvement plan
In order to ease liquidity and restore confidence in the UK banking sector, the Bank of England has announced a plan which will allow UK banks to swap their AAA mortgage-backed securities for Treasury bills. However, although the scheme should fulfill the bank's aims of improving the functioning of the wholesale money markets, it is unlikely to benefit mortgage customers.
22 Apr 2008
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