Credit card debt in the Uk today Essay Example | Topics and Well Written Essays - 1250 words

Credit card debt in the Uk today - try on ExampleThe building society branch network was expanded at high pace in the 1980s in the United Kingdom. But facing the recessions in the 1990s the trend declined. Most of the societies rationalized their network in put up to cut the live. The new trend was to give importance to the quality rather than quantity. This in turn gave scratch to the trend of targeting high profit customers in order to gain high profits by cross- change products to these customers. (Birkin & Clarke, 1998)The main customers of the building societies are the common men. Most of the products of building societies as discussed above are knowing while keeping in view the needs of ho callhold customers. These products are attractive for them because the way to use them is simple.Like all the commercial banks the building societies also offer the Credit card services which nourish easy terms and conditions and provide the customer with the facility of loan. These c redit cards are also diametric according to the packages they provide such asThe strength of U.K financial system largely depends upon the external shocks the banks know to suffer. In the year 2005 the U.K banks financial strength ratings were comparatively high as compare to rest of early(a) international banking institutions. The composition of the earnings of the banks kept reshaping. The income indicated a declining trend of retail borrowing, although offset by revenues from integrated banking than that from retail lending. Some banks in wholesale markets also gained dealing profits.It is future forecast, that the banks will earn titulary profits in coming year. Due to the unsecured lending exposure some of the banks would have laggard income growth. The competition in the banking industry and the declining trend of retail rending can result in a slow income growth capitalisation.The capital ratios in major UK banks remained unchanged i.e. above regulatory minimum residuu m required.Passing the stress tests the banks had sufficient profits and reserves capital despite facing various stinting and external, shocks. The IMF (FSAP) report stated that despite all the worst case scenario combined together the total cost for the banking sector is just 0.35 % total assets. (Bumn et al, 2005)The level of bad debts in UK is triggering at high speed as debt provision has been made easier to consumers in shape of credit cards and other financial instruments. The issue has hold out an important concern for the economists in the banking industry of UK. In the UK, bad debts are on average virtually 3 per cent in the credit card market, compared with the present level in the US of close to 5 per cent. If the UK follows the US trend, credit standards may decline as competition increases.These societies also provide book of facts services to the customers since most of them are busy with their business or family lives to dedicate sufficient time to send off for t heir financial futures. Without adequate planning financial goals may be unrealistic, which can result in evidential financial under-achievement. They often get teamed up with other legal companies in order to provide the customers with a comprehensive range of value for money insurance products to protect home, contents, and mortgage