Banks are, above all else, a leveraged play on the economies in which they operate.Sainsbury's Bank is ready to listen to offers for its mortgage book
The sale is mainly about bolstering Metro's capital position and saves it having to raise fresh money to serve as a buffer against potential loan losses in future.That need to reduce funding costs was also a factor in the decision of Tesco Bank to sell its mortgage book to Lloyds Banking Group last year for £3.8bn.The reason for these sales is not hard to divine.But it is also because the mortgage market is an intensively competitive one.
Even Nationwide Building Society, the second biggest player in the market and believed to be leading the race to buy the Sainsbury's Bank mortgage book, said earlier this year it was prepared to let its share of new lending slip because of the fierce competition.Sabadell recently made clear that it was prepared to listen to offers for TSB.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: SkyNews - 🏆 35. / 67 Read more »