KPMG: U.K.’s big banks cut lending by more than half a trillion dollars

  • “A wall of money has gone out of the banks and into fines and redress,” says KPMG’s U.K. head of banking Richard McCarthy. “Hopefully the most egregious things have come out and hopefully the banks will be able to move forward.”
  • Over the last five years, according to KPMG, the U.K.’s largest banks – BCS, RBS,HSBC, LYG, OTCPK:SCBFF – have cut consumer and business lending by $595B, or 14%.
  • “There is light at the end of the tunnel,” says McCarthy, with the report noting redress costs and fines fell 44% to £2.4B in 2014’s first six months from a year ago.
  • Meanwhile, the banks are sharply lower premarket over Scottish independence jitters. BCS -3.5%, RBS -4.1%, LYG -4.9%, HSBC -2%.
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