The Mancunian, Britain’s biggest student newspaper, serving Greater Manchester, reports ring-fencing the retail arms of the UK banks from their investment sides will increase the cost to present students in the future when the costs thrust upon the banks are funnelled down to consumers, a large population of which would be those who are students right now.
the costs of implementing the reforms-(estimated at an annual cost of £4bn-£7bn) and the increasing capital requirements will likely feed in to the price of borrowing in the future. By 2019, potential first time buyers may experience greater difficulty gaining mortgages; graduate entrepreneurs seeking start up capital may struggle too. Such factors could generate stutters in the economy.
There are also premonitions of an end to fee-free banking. Currently, roughly half of all current accounts charge a monthly fee, but free current account facilities may see their demise if the cost of reform is passed on to high-street customers.
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(Image credit: The Mancunian)