UK no longer among most stable banking systems

The United Kingdom is no longer classified as being among the most stable and low-risk banking systems in the world, credit rating agency Standard and Poor's (S&P) said on Thursday (28th January).

Britain's weak economy will continue to hinder the credit profile of it's banking industry. S&P said in a report, adding it expected the unwind of high levels of debt to weigh heavily on economic growth prospects and banks' financial performance. '

We no longer classify the United Kingdom (AAA/A-1+)among the most stable and low risk banking systems globally' Standard &Poor's ratings service said.

What this means is that because of Gordon Brown's complete failure to produce credible policy framework to reduced our national debt or even a policy to stop it soaring by 300-400%, international investors are losing confidence in our country's financial services sector. Gordon Brown is running the economy for the short term benefit of his Labour Government rather than the long term good of the country . This could mean more expensive mortgages and loans for hard pressed householders and businesses in the near future due to UK Banks finding it harder to borrow money at competitive rates due to an increased risk premium.