News: Tens of thousands of customers have switched bank current accounts under new rules requiring faster transfers, according to Sky News. The broadcaster said that the Payments Council was expected to reveal that some 35,000 customers switched accounts as a new requirement to implement transfers within seven days kicked in. The Payments Council is also expected to say that the introduction of the new system was achieved without any significant technical glitches.
BMI View: Although total UK banking sector assets continued to contract during the first five months of the year, the sudden upside macro surprises across the economy are a favourable development which will provide a modicum of support going forward. Moreover, we believe that recently inaugurated Bank of England Governor Mark Carney will look to intervene further on the monetary policy front, which will bolster liquidity in the industry, though admittedly this could come at the expense of flattening the yield curve.