Poland and Polish Discussion Group and Forum

Welcome to the original English language Poland and Polish discussion group board. This message forum is a place where English-speaking Poles, foreigners (expats) living in Poland, and anyone with a genuine interest in Poland can discuss and read the views of others concerning Poland. Subjects include: Polish news and current affairs; Life in Poland; politics; genealogy research; Polish culture and history; advice and tips on visiting Poland; Polish property and investment issues. The aim of our group is to increase awareness of wonderful Poland using the English language and allow and foster the honest debate and exchange of opinions on anything vaguely related to Poland and Polish - positive, negative and/or neutral! To state the obvious: all opinions and views expressed on this site are solely those of their respective authors and are not necessarily those of anyone else! Messages consisting of ads will be deleted.

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Poland and Polish Discussion Group and Forum
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British banking crisis

Hope no-one's got money in the Northern Rock bank.

They've asked the Bank of England for emergency support and clients can't get their money out. Good thing I moved out of that bank some time ago.

Re: British banking crisis

When the Bank of England give such support, it always means that the problem is temporary & resolvable. If the problem is serious, they order other banks to administer the problematic one. This has only happened to banks a couple of times. It usually affects Friendly Societies.

One reason for the crisis at Northern Rock is that the moneymarket don't believe that their portfolio of properties is valuable enough, and are scared because of the US sub-prime mortgage crisis.

Re: British banking crisis

Well, not wanting to be an absolute anorak on such matters ...

Northern Rock has the highest proportion of borrowers of all mortgage-lending banks, so it has to borrow proportionately more of its liquidity funds on the interbank market than do other banks. And the other banks decided to stop lending in order to stave off any potential credit crunch of their own. Hence NR had to have credit facilities from the Bank of England (the option to borrow, not actually borrowing per se). NR's business is pretty sound on the whole, though they did give a profits warning.

Re: British banking crisis

Exactly. And most of the properties they have mortgages on are very much at the lower end of the housing market.