20 October 2017
Gary Wright

Gary Wright

Gary Wright - BISS Research

277Posts 1,048,077Views 369Comments


EBAday is the annual event for European payments professionals organised by Finextra and the Euro Banking Association. This community has been created to deliver a forum for EBA delegates to exchange views on instant payments, open banking and new developments in payments processing and technology.

Interest cuts; a test for Banks

06 November 2008  |  2640 views  |  0

Today's mammoth cut of 1½% in the interest rate is enormously welcome in businesses both small and large across the land. It is an important weapon in the fight to stave off the impacts of the recession and to bring inflation under control. However, this will only be the case if the banks pass the cut on to borrowers.

There must be a temptation by the banks to retain as much as possible of the cut to increase their margin and their profits. In a year which has seen banking profits plunge almost as fast as their share price, it will be understandable if the banks take this opportunity to claw back some of their losses. But Banks must not succumb to this temptation and look at the bigger picture.

The rate cut will only be beneficial to the country and ultimately the banks if it is passed onto the hard pressed consumer and businesses under pressure to maintain employees. If businesses continue to reduce costs by redundancies, the spiral of economic downturn and increased dole queues will lead to increased taxes and eventually lower profits. The whole thing is dependent on balance and greedy bankers must for once show how socially responsible they can be and join the nation in the tough economic battle that needs to be won for the benefit of all.    


Comments: (0)

Comment on this story (membership required)

Latest posts from Gary

Wealth Management - Turkeys Vote for Christmas

27 September 2013  |  3710 views  |  0 comments | recomends Recommends 0

The future of systems in financial services

29 July 2013  |  3391 views  |  0 comments | recomends Recommends 0

Social media and trust in financial markets

25 June 2013  |  5977 views  |  0 comments | recomends Recommends 0

Technology changing the markets

25 June 2013  |  3301 views  |  0 comments | recomends Recommends 0

Technology begins to change

14 June 2013  |  2833 views  |  0 comments | recomends Recommends 0

Gary's profile

job title Analyst
location London
member since 2007
Summary profile See full profile »
CEO of B.I.S.S. Research, founder of the BISS Independent Accreditation for all systems and services provided to financial services companies internationally. Guest Lecturer at Reading University and...

Gary's expertise

Member since 2007
277 posts369 comments

Who's commenting on Gary's posts