Banks have Passed their Stress Test by Maximising Profits at the Expense of Savers

The announcement from the Bank of England that the major UK lenders could weather a financial meltdown fails to address the problems facing millions of households.

The UK's megabanks continue to maximise their profits at the expense of savers. By pushing up borrowing rates and keeping rates on saving deposits low they are creating a spiral of increased costs and reduced savings, which will drive up inflation.

Youness Abidou, CEO of Nester, commented: “Giving these megabanks a clean bill of health does not help an ailing economy where households throughout the UK are struggling to pay their day-to-day bills. The Bank of England stress test just hides the lack of transparency and unethical behaviour of the megabanks.”

“To say that the biggest banks are resilient enough to offer more help than in the last global crisis, 15 years ago, fails to understand the problem. If millions of mortgage

holders are forced to ask for help, they will lose their credit rating and be forced away from regulated financial services. This could create a bigger problem than it solves.”

“Instead of supporting the unethical approach of the large lenders, and pushing up their share price, the Bank of England should look at the role of independent financial businesses. These offer more transparent and fairer options for investors and borrowers.”

Nester is a P2P platform, using technology to provide easy access to a new range of Islamic Finance compliant property financing products. Through the Nester platform approved investors provide capital to buyers by investing in the financings directly, while their investment is secured on the underlying property asset(s). The transactions are sourced by Nester who in turn carefully screens and underwrites each deal before putting the opportunity on the platform.

For the investors, this gives them access to a fixed income property-based product and for buyers it is a more transparent and ethical alternative mortgage which is not directly impacted by the issues the traditional mortgage market is facing.

Don’t invest unless you’re prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Profit returns shown and past performance are not a guide to future performance. Tax treatment depends on individual circumstances and may change. We recommend you seek financial advice before investing. Take 2 mins to learn more.