But, but, but….

Banks have been accused of profiteering as new figures show they have almost tripled their margins on mortgages in the past year.

Isn\’t this what we want to happen?

If banks are falling over left right and centre because they\’re going bust then we want them to improve their profit margins, don\’t we? So that they don\’t go bust?

 

One comment on “But, but, but….

  1. No. This is too exclusive a focus on capital ratios, without sufficient consideration of reserve ratios. We need more encouragement for people to save, and that will reduce banks’ margins, by increasing their cost of borrowing. This is a sign that our economy remains unhealthily focused on consumption and debt, rather than moving back towards a more economically-sustainable balance. http://www.pickinglosers.com/blog_entry/bruno/20090323/prudential_cost_financial_crisis

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