Banking conduct code kills the CAR
Article Abstract:
The compounded annual rate of interest (CAR) will not appear in the promotional material of UK banks and building societies from Jan 1, 1999. It will be replaced by the annual equivalent rate (AER), which indicates what the gross annual interest rate would be if interest were paid into the account and compounded. The abolition of the CAR and the introduction of the AER have been prompted by the introduction by the Building Societies' Association and the British Bankers' Association of a new code of conduct for the advertising of interest-bearing accounts.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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OFT warns lenders on lock-in mortgages
Article Abstract:
The UK Office of Fair Trading (OFT) has expressed concern about the way in which banks and building societies are placing themselves in a position to vary interest rates while borrowers are committed to a mortgage. If the OFT undertakes a full investigation of this matter, lenders could be forced to change their approach, thus removing a whole group of mortgage products from the market. The criticism from the OFT comes at a time when the banking industry is already suffering from public relations difficulties.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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Credit tax axe moves goal posts
Article Abstract:
UK banks and building societies will have to adjust downwards the forecast yield on their equities as a result of the decision by Chancellor Gordon Brown to abolish tax credits on dividends. Some fund managers believe that this move will strengthen the existing trend towards traditional high-income shares performing very badly. They recommend that funds are redirected into a combination of low-yielding equities. It should be possible to use investment in fixed-interest securities as a way of boosting yields.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1997
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