Conditions in the banking sector 'improving'

Professionals working in London banking jobs should have noticed a significant improvement in market conditions over the past six months, according to the Bank of England.

The problems experienced by the banking and financial services industry over the last two years have come to symbolise the UK's economic problems, but the Bank has suggested that things are now getting better.

In its bi-annual Financial Stability Report, the Bank said conditions had been noticeably more stable in the last six months, thanks to the support provided to the banking sector by governments around the world.

Many asset prices have improved, thanks in part to risk-free, low interest rates, and uncertainty in the market has reduced, the report noted.

"The market rally has boosted bank profits, lowered concerns about potential future losses, and has enabled banks to raise further external capital," the Bank said.

Its positive assessment of the market comes as some people in London banking jobs threaten to move overseas in order to avoid the proposed tax on bonuses.

However, Andy Haldane, the Bank of England's executive director for financial stability, recently told BBC World Service that losing some banking jobs and financial services operations to other countries may not be a bad thing in the longer term.

Updated: 21 December 2009.
Categories: banking-and-financial-services, market-and-industry-news.