Relation between banking and the economy

banking-and-the-economy

Banking and the economy are two words which sound like have no relationship, but we know both involves money. From this standpoint, we now have some connections that can define a relationship. Banking provides the liquidity needs for businesses and families to invest for the future. From the bank loans and credit, given to businesses and families, this money is used to invest further and which in turn leads to growth in the economy. This depicts a connection between banking and economy. The economy of a country depends on banking. Banks can also use the funds stored by individuals to invest in other investments, so it also helps in growth of the economy. Without these banking institutes, the economy growth would be fragile. Most countries depend on banking for funds which they use to invest, thus lead to the growth of its economy. Europe’s crisis-hit banks and could topple the entire world economy. This clearly depicts how important banking is to the economy and the relationship that banking and the economy have.

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Domestic economy

Domestic economy news

HSBC bank UK focuses on the most important economy in the world – its domestic economy. The bank shows its ability to support trading requirements locally and internationally. The bank has an award-winning cash management proposition which is used by thousands of clients globally. The HSBC banks reducing senior staff in investments has meant that staff around the world will be losing their jobs. Senior posts in the investment banking division are being cut so as to reduce costs across the company. Some time ago, the chief executive officer outlined a 3-year plan to shut money-losing businesses and eliminate thousands of jobs. Last June already it was decided to slash 1 in 5 jobs so as to combat the sluggish domestic economy. Chris Clark, global head of marketing and corporate sustainability at HSBC, is also leaving the banking giant, after being with it for 15 years. His departure happens to come at precisely the time the bank is cutting senior roles in the investment banking division. In spite of this, the job of the HSBC Bank is to continue to provide personal support for your and the country’s domestic economy towards a secure future.

Stock market turns just when investors are hungry

Stock market heroics - Bad for business?

The UK stock market, which is one of the world’s most powerful markets, has turned lately. Investors had hoped the economy would get better after three bad months, with terrorism nearby, and a global economic slowdown. The US ‘bulls’ of the stock market came out in droves over the past three months, cheering on their favourite stocks for heroic recoveries. But, only now, the market has hit the level it was at back in January 1st, and the market has again taken a turn for the worse. This has investors concerned about whether the second quarter will be as bad as the first and that the ‘bullish’ trading ploys that had helped bring about a miraculous first quarter recovery just won’t be there to save the market again. Central banks have not been playing ball with investors either. Talk of our ‘Brexit’ should be helping out certain industries, but everyone is rushing to the US to cover losses. Even the investors who sprinted towards the favour of the banks are now left in the cold, with the central bank’s door having closed sternly on them. There can be “too much of a good thing”.

Service Sector is growing in UK?

UK service sector is growing

This is really nice. According to the recent survey by PMI the service sector is maintaining its growth in the first month of the New year. The service sector is the dominant sector in UK  making almost three-fourths contribution and this augurs well for the economy. In spite of skepticism about the impending fall down due to the chinese economy down turn, things look different.The data and surveys indicate a healthy future for UK. However the June EU vote will decide where the economy will go.

The CIPS index suggested a positive change of 60 points which literally means that the service sector is growing, albeit slowly. The surveys by all agencies convey the same thing the growth is positive, but the question of sustenance actually remains unanswered. The biggest challenge is not far away. This will be the June EU referendum when the whole UK votes to remain with EU or not. This will be huge decision as it means working alone for the UK. But the signs of the British Pound gaining on the Euro and Dollar indicate that the currency is going strong.My vote for the EU will surely go for UK being away from EU as it will help UK stay away from spending on not so well-managed economies of some European countries. So my fingers are crossed, but hoping that UK maintains its positive growth. Amen!

Bank of England Has Promising News

Some good news just came out about our Bank of England and UK Lenders, after a long road of troubled waters that had me so disillusioned I left the industry, it seems we MAY be turning a corner.

Capital targets are now in reach for most of the lenders and most hope to see some loosening in regulation to help improve the system and keep the improvements coming steady!

The Governor Mark Carney said during a news conference that things are where they need to be and according to his words in a Wall Street Journal Article “There is no new wave of capital regulation coming.”

The taxpayers, that is, have footed the bill for the bankers during the global crisis and now we are finally seeing these broken banks come back to health.  While still a bit speculative of the news, it’s a good sign mates!

There are what they call “stress tests” in the banking world and ours just past the second level.

I find the banking world to still be shaky and with terror strikes having us on heightened alerts there are other ways to make sure you can secure some funds for holiday gifts or travel as we hit that season.

It’s not a great time to pull money out of any investments, so what about payday loans  if you can pay them off quickly, I’ve needed to take advantage of these and not risk pulling any money out of a shaky financial market. The news looks promising, but know we have options as I myself look to get to Australia to see relatives on holiday for Christmas!

Keep your chin up investors and we’ll all grow together through these shaky financial times that look to improve, but we always want to err on the  side of caution.  Best of luck mates!

Until next time…

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Bank of England

 

Tax Credit Payments Limited to Two Kids

 

Have you noticed that it is always the poorest or the most needy who seem to be the last to receive any kind of pay-out. Often you hear of food parcels and monetary gifts headed their way and then these seem to be intercepted en-route, never to land into the hands of those who could really use it.. Now it seems as though Britain’s poorest are going to have their welfare payments cut over the next  years. This apparently is in keeping with Chancellor George Osborne’s plans to re-balance public finances. He says he wants to reshape Britain into a low-tax, small state economy. He reckons that welfare spending is not sustainable and that it ‘crowds out spending on things like education and infrastructure that are vital to securing the real welfare of the people’.

tax credit payments limited to two kids

One good thing to come out of this is that the number of children for whom parents can claim tax credit payments is limited to two in the future. I always say that over-population is the route cause of many modern day ailments so this is one good thing. While welfare payments are going to be cut, good news is that George Osborne ha pledged to make Britain a ‘higher wage and  lower tax country, and this has been well received.

Tips to Save Money on car Insurance

 

Saving on Car Insurance

Ways for saving Money on Insurance of your Car:

  1. Pay attention on the rates. Pay the premium half-yearly to save on the interest of 20% or more if you are paying the monthly premium. Generally people do not know this.
  2.  Insurance coverage should be checked very quarter. There are many things which change in the meantime. You can drop the riders not required and add some new riders. A new driver will require more coverage than an experienced one. Also coverage varies according to daily running of your car.
  3. Use the internet and local offices before you buy insurance. Do not stick to your old service provider if he cannot match the discounts available readily in the market.
  4. Do not claim insurance if your mirror is broke. Claiming frequently will increase your premium. If you make claims rarely it will lower the premium.
  5.  If you are a person paying bills regularly then your credit score will be good. The better credit score will help you get insurance at a lower cost.
  6.  Always install anti-theft devices and tracking devices in your vehicle. This can result in additional discounts.
  7. Never let your insurance lapse. It will increase the cost.
  8. One thing I learned from my cousin was that if you bundle all the insurance together you can save a lot. Try this tip it helped me save a month’s income!
  9. The lesser the number of parking and driving tickets the better you are placed when taking insurance.