Osborne bullish on state of UK banking

The Chancellor, speaking in the House of Commons yesterday, added that the downgrade of 12 UK banks by Moody's did not reflect a deterioration of the banking system, but the ring-fencing recommended by the Vickers report. "It is recognition of the success of this government's efforts to reform banking," he said - and extracting commitments from all the high street banks to increase SME lending was part of this guarantee. Osborne also urged eurozone nations to increase the size of the €440bn bailout fund, and that a 1% rise in interest rates would cost the UK £10bn in extra mortgage co...