Wednesday, 18 July 2018
Nick O'Connor , Southbank Investment Research :
**The UK financial system loans a scary amount of money out to other financial institutions – in fact, FIVE HUNDRED PERCENT more than the G7 average. As of 2014 (the latest figures available) this figure stood at 34% of our entire GDP.
**The UK financial system has the highest exposure to foreign debt in the G7 – again, because our entire banking system is one big 'super spreader'.
**It is by far the most bloated sector, compared to the size of our economy, of any G7 nation. Banking assets are worth four times the entire UK economy.
**It is second only to Canada when it comes to exposure to consumer debt. Consumer debt is expected to reach 150% of GDP by next year.
**It has the lowest 'useful lending' ratio (lending to real businesses not other financial institutions) in the G7.
**It has the highest 'risky assets' ratio of any G7 nation (the ratio of safer 'core' assets to riskier 'non core' assets).
**It has the highest level of 'securitised assets' in the G7 – complex securities that helped create the last crisis.
**The highest leverage (borrowing) ratio of any G7 banking system