U.K. Banks' Funding Volumes Increase In Q4: BoE
LONDON (dpa-AFX) - U.K. banks and building societies reported a slight increase in funding volumes in the fourth quarter, the Bank Liabilities Survey from the Bank of England showed Friday.
While retail deposit funding remained unchanged, 'other' funding namely wholesale debt funding, wholesale deposits and funding via central bank operations increased at the end of 2016. Lenders expect total funding volumes to fall in the first quarter.
Spreads on other funding and retail deposits declined in the fourth quarter. Lenders expect further considerable falls in spreads on retail deposits in the first quarter.
Investor demand for banks' wholesale debt was broadly unchanged in the fourth quarter and it is forecast to remain so in the first quarter.
Lenders reported that total capital levels increased in the fourth quarter of 2016, while their average cost of capital decreased. The quarterly survey was conducted between November 21 and December 9.
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