Shaheen Bhikhu and Thomas Viegas
Central banks respond to inflation by setting interest rates in order to achieve domestic price stability. Occasionally, economic shocks are global in nature and so monetary policy can move in tandem across the world. But how common have directional changes in monetary policy been across the world over recent decades?
Continue reading “Bitesize: Riding the waves: the breadth of global monetary policy changes”
Fergus Cumming and John Lewis
Over the last 15 years house prices have increased and home-ownership rates have fallen. But while the *number* of first-time buyers (FTBs) has fallen – what happened to the average *age* of FTBs? Not very much…
Continue reading “Bitesize: The age evolution of first-time buyers”
The Payment Protection Insurance (PPI) mis-selling scandal has rumbled on for years. But how did PPI impact loan margins pre-crisis?
This post argues
that income from cross-selling PPI substantially offset lenders’ margins on
personal loans between 2004 and 2009, and compares the pre-crisis PPI-adjusted
margin to loan spreads today.
Continue reading “Bitesize: How much did PPI subsidise personal loan rates pre-crisis?”
Mike Anson, Georgina Green and Ryan Lovelock
Montagu Norman was the Bank of England’s longest serving Governor (1920-44) and one of the leading players on the interwar international financial stage. He was a controversial and enigmatic character who pioneered co-operation between central banks.
Continue reading “Bitesize: The travels of Montagu Norman”
UK GDP growth slowed sharply at the beginning of this year. Over the same period, Britons suffered through unseasonably cold weather, popularly known as “The Beast from the East”. Are the two related?
Continue reading “Bitesize: Snowed In”
How poor has the past decade of productivity growth been by historical standards? Exceptionally.
Continue reading “Bitesize: The past decade’s productivity growth in historical context”
How low are UK real interest rates by historical standards? Using the Bank’s Millennium of Macroeconomic Data, I compute real bank rate, mortgage rates, and 10-year government bond yields over time.
Continue reading “Bitesize: UK real interest rates over the past three centuries”
James Cui and Marcus Pettersson
Shortcomings of the Basel capital framework became apparent in the 2007-8 crisis. One much reviewed and debated issue is that capital ratios can be increased by changes to methods and models for calculating RWA (M&M changes hereinafter) rather than by changes to balance sheets. How have UK banks fared in this respect?
Continue reading “Bitesize: Risk-weight watchers: a probe into UK banks’ capital ratios”
The interest-only product has undergone tremendous evolution, from its mass-market glory days in the run-up to the crisis, to its rebirth as a niche product. However, since reaching a low-point in 2016, the interest-only market is starting to show signs of life again as lenders re-enter the market.
Continue reading “Bitesize: The rise and fall of interest only mortgages”
Aidan Saggers and Chiranjit Chakraborty
Investment in the Financial Technology (FinTech) industry has increased rapidly post crisis and globalisation is apparent with many investors funding companies far from their own physical locations. From Crunchbase data we gathered all the venture capital investments in FinTech start-up firms from 2010 to 2014 and created network diagrams for each year.
Continue reading “Bitesize: Flourishing FinTech”