A controlled chaos



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OK, I admit that this week the blog is a bit of a struggle. I have been in meetings this week and despite the August holiday season being in full swing, I am chasing around like a madman trying....

OK, I admit that this week the blog is a bit of a struggle. I have been in meetings all this week and despite the August holiday season being in full swing, I am chasing around like a madman trying to keep on top of the current commercial cases on my desk…

My three week holiday in NZ for Christmas and New Year was fantastic at the time, but now I am covering for other people here in August, I am cursing the fact that my next holiday isn’t until November!

In amongst this controlled chaos, I have been trying to think of a good topic for this week’s blog. I guess that you can tell by my gentle ramblings that I haven’t quite nailed it yet. So, given that I can't just leave the piece hanging in mid-air, I thought I would try a sampler menu. Normally when you go to a fancy restaurant you can pay for a nice selection of dishes that showcase the chef’s dishes along with some recommended wines that complement the food. This is a similar concept in blog form, where I can showcase the financial thoughts that were racing around my head this week.

The first topic that came to mind was the official launch of Shawbrook’s fixed rate products. This is something that a lot of clients have been asking for and I am sure that there will be plenty of takers looking to lock in rates. I thought that this could be the start point for a piece around the future direction of interest rates, and I was going to compare the current situation in the UK with New Zealand, as they have already been through their interest rate rises and it now looks like their rates are beginning to plateau. But, then I thought that I have discussed this type of topic a few times already, so discarded it.

The next topic that came to mind really felt like it had legs. I was looking at the structure of the German banking system (as you do) and thought that there was the embryo of a really good article. The German system has big, multi-nationals such as Deutsche Bank, but also a number of smaller savings banks and regional, public banks. I thought that this would be a great start point for an article comparing the ‘too big to fail’ institutions that still dominate here in the UK, the newer lenders to the commercial arena (such as Shawbrook) and how the UK market might develop, and whether we would ever see something akin to the German system.

I thought all those things, but then it sadly dawned on me that I would really need to undertake much more research on the German model and to think a little more deeply about market forces here in the UK to come up with something meaningful.

Watch this space, as there will be a terrific blog along soon, I promise, but just give me this little leeway here – it is August after all.

 

 

 

 

 By Rob Collins of Brightstar Financial

 

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