Editorial: On Course…for the Rocks

on course for rocks autumn statement 2014

The Chancellor declared in his Autumn Statement that Britain was on course for a budget surplus, growth and national recovery. Yet at the outset he had staked his credibility on removing the deficit within this Parliament. Not only has the government failed in this overarching goal, but the deficit is unlikely to be eliminated until… Read More »

Shadow Banking, the Elephant in the Room

david phillips labour economy

Recent developments in bank regulation have increased capital requirements for banks and so constrained lending, which shows up in small business struggling to secure finance. The regulations originate from the Basel Committee on Banking Supervision (BCBS) (Basel III – new measures to strengthen regulation, supervision and risk management) and the European Union Capital Requirements Directive… Read More »

Editorial: Towards a More Stable Global Financial System

david phillips global financial stability

Resolving Macro-Prudential Matters Without Taxpayer Subsidy And so the US Federal Reserve brings to an end its $3.7 trillion QE experiment which ostensibly was introduced to kick start the economy, though this programme combined with a zero interest rate policy (two “subsidies”) has also enabled misallocated capital to continue propping up zombie companies. We must… Read More »

UK Financial Sector Needs Better Not More Regulation

UK financial services regulation

Douglas Flint, Chairman HSBC along with a number of other senior bankers (FT 7th August) are said to be critical of the ways UK financial regulators are now operating. Other press articles have also give the impression that the UK Government’s financial services regulatory requirements applicable now and being consulted on for the future, are… Read More »

Harnessing Community Funding to Boost Start-Ups

ryan carter lfig crowdfunding

Britain’s economy faces a major problem, one which stifles aspiring entrepreneurs’ ability to reach their personal goals. The problem centres on the inability of start-ups and small firms to get the funds they need, whether to grow, to develop ideas or to complete an essential patenting process. Small businesses generally only succeed after years of… Read More »

The Dawn of Virtuous Finance and the Public Good

david phillips global financial stability

EDITORIAL: Yet another major financial institution made the headlines recently with Lloyds Banking Group’s £218 million fine, paid to the UK Financial Conduct Authority (FCA) and various US financial regulators over its manipulation of LIBOR and the Special Liquidity Scheme, a rate used by the Bank of England. These follow similarly hefty fines by other… Read More »

Banking Supervision Challenges for the UK

UK financial services regulation

The one-size-fits-all approach from the Basel Committee on Banking Supervision has, inevitably, run into various challenges. Not surprisingly from London where Mark Carney, Governor of the Bank of England. On the one hand Mr Carney would like to make it easier for smaller ‘challenger’ banks to lend to the ‘small to medium enterprise’ (SME) sector… Read More »

IPPR Sets a Direction for Labour on Welfare

elliot bidgood uk economy competitive inclusion

This month IPPR published its Condition of Britain report, a spiritual successor to the 1994 Commission on Social Justice that laid the groundwork for the previous Labour government. Condition of Britain focuses on how Labour can bring about social renewal in leaner times and empower individuals and communities, rather than relying solely on monolithic state… Read More »