Henry Grunfeld Professor of Banking, Dr Peter Hahn, braved an early morning start yesterday (3 August) to discuss the latest figures from HSBC and their impacts on the global markets.
In a near-five minute interview, Dr Hahn spoke at length about how the low interest environment means its not a good time for banks looking to make returns. “Demand for money is down”, explains Dr Hahn, “they can’t lend it out to the right risks at the right profits.”
Having discussed HSBC, the interview then progressed to the Bank of England’s likely cut of the interest rates from 0.5 per cent to 0.25 per cent and its likely impact. Here, Dr Hahn said, the environment would “make it even harder for banks to make money and is a symbol of reduced opportunity for the whole banking system.”
Listen to the interview in full on the BBC website, by clicking to the 16 minute mark.