The Bank of England has created a scheme to bypass financial markets and get low-cost cash to the UK's banks. Through the Term Funding Scheme (TFS), banks will be able to borrow directly from the Bank of England at the new 0.25 percent base rate. Typically, British banks pay around one percent to fund lending, according to Bank of England estimates.
Santander responded saying it will pass the lower interest rate on to its variable rate mortgage and business loan customers while NatWest said it was considering cutting rates.
RBS has abandoned plans to launch Williams & Glyn as a standalone bank as the state-backed lender reported a £1 billion second-quarter loss. RBS spent £1.4 billion trying but failing to develop an IT system for Williams & Glyn, and it reaffirmed that selling it remained an option, according to the Financial Times.
RBS, which is supposed to divest Williams & Glyn this year as part of an EU condition for the £45 billion financial crisis bailout it received, has now incurred losses of £2 billion in the first half of this year.
The Wall Street Journal reports that a long-running dispute between the United States and China over the ability to regulate auditors of Chinese companies listed on American exchanges could be on the verge of a breakthrough.
To date, China's government has refused to allow US authorities to vet China-based firms that audit US-traded Chinese companies, but Alibaba Group and Baidu and their auditors are reported to be preparing for inspection by Public Company Accounting Oversight Board officials.
Citigroup is on track to announce the sale of some of its South American retail operations by mid-September, Helio Magalhaes, president of the bank's Brazilian unit, said, according to the Wall Street Journal.
Citi announced its intention to sell retail operations in Brazil, Argentina and Colombia in February.
BNP sharpens focus with sale of $485m stake in First Hawaiian
JPMorgan settles debit card suit brought by ex-inmates
DBS's ability to manage bad loans questioned in JP Morgan report
Square stock bounces 13% on narrower-than-expected loss
Stop backing risky crowdfunding, MPs tell the government
Goldman Sachs says Brexit could adversely affect operations
UK banks pin Brexit hopes on financial crisis bailout negotiator
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