The Uk’S Banking and Insurance World

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This is a short summary of 3 topics concerning UK's Banking and Insurance World.

Business Economy & Finance

The UK’s banking and insurance world Made by Irina

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The first half of 2016 has been an incredibly busy period for our corporate and banking teams who have advised on a whole range of transactions in a variety of sectors. This period saw us not only named by Experian as one of the Top 20 UK's leading dealmakers for the first three months of 2016 but also enabled our corporate finance team to pick up the coveted ‘Legal Team of the Year’ award at the Insider East Midlands Dealmakers Awards in May 2016. Here are a selection of the deals we have been involved in which we are proud to say also include the Insider East Midlands Dealmakers Awards ‘Deal of the Year’ where we acted for PCT Healthcare on its £80m acquisition of WR Evans’ Chemists. https://www.brownejacobson.com/sectors-and-services/services/corporate-and-commercial

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Since QE began in early 2009, UK gilts in issue have increased from £600 billion to £1.6 trillion. Bank of England holdings have increased from zero to £400 billion accounting for 25% of all gilts in issue. BoE holdings peaked at almost 30% of total holdings in 2012. Overseas holdings of gilts, have doubled from £200 billion to £400 billion. In the most recent period, overseas holdings have fallen to 25% of all gilts in issue, compared to an historical average of 30%. UK institutional holdings of gilts have increased from £400 billion to £800 billion accounting for 50% of all gilts in issue. Holdings of gilts by pension funds and insurance funds have increased from just over £200 billion to almost £500 billion. As a share of total gilts in issue, pension fund and insurance company holdings have been steady at around 28% over the six year period. Other UK financial institutions have seen a fluctuation in holdings with some suggestion of “front running” i.e. buying gilts ahead of the Bank of England purchase programme to benefit from rising prices. in the initial stages. In fact, all major stakeholders in gilts have increased holdings over the five year period. This raises an interesting question about from whom has the Bank of England bought gilts as part of the QE process? Only in the very early stages of QE is there evidence of purchased from the private sector (note 7). In reality it would appear the Bank of England purchases gilts from the Debt Management Office and not from financial institutions. Asset values are guaranteed by Treasury. JKA Dividends, yields and coupons are also returned to Treasury, which effectively enables the government to finance borrowing with a Dire Straits underpin “Money for nothing - Gilts for Free.”

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PKF Francis Clark is delighted to present our 13th annual Finance in Cornwall event on Tuesday 25th June 2019. Delegates will hear from more than a dozen sources of funding and business support via short presentations and panel discussions, with the opportunity to ask questions and network with other local business owners and directors and professional advisers. This year we have also teamed up with Cornwall Lenders Forum (a Cornwall Chamber of Commerce initiative), Acceleration Through Innovation and Cornwall Trade and Investment. We have welcomed over 150 people to the event each year and we recommend that you reserve a place if you are thinking about expanding or investing further in your business in Cornwall.

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