CBI report sees optimism in UK financial services

| March 29, 2010 | 0 Comments

A report by the Confederation of British Industry (CBI), has revealed a degree of optimism for the UK financial services sector, which is expected to record higher growth in the next three months, after stagnating in the last quarter.

According to the business group, an improvement will be seen in the next three months after business volumes, which fell for banks and security traders during the three months to March, are expected to increase in the second quarter.

A positive balance of 48% of firms expect a rise in business volumes in the next three months, which is the best result in four years when the balance was 58%.

Meanwhile, the report also found that confidence in the banking sector continued to recover.

Ian McCafferty, the CBI’s economic adviser, comments: “Financial services companies hope lending will grow across their customer base over the coming quarter, lifting business volumes and helping profitability.”

However, the business group’s survey also found that a record three-quarters of firms were concerned about how regulation would affect their ability to grow over the coming year.

Furthermore, 85% of the companies questioned fear the UK is losing its competitiveness as a leading financial services centre.

London has emerged from the 2008 banking crisis, but the sector is coming under pressure due to time-consuming procedures put in place to prevent a repeat of the financial meltdown.

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