Reeves calls in banking chiefs for financial growth talks

Chancellor Rachel Reeves (pictured) is reportedly bringing in the heads of the UK’s leading high street banks for a critical discussion on the government’s economic growth agenda, with a particular focus on financial services and mortgage market dynamics.

Sky News reported last night that senior executives from Barclays, HSBC, Lloyds Banking Group, NatWest and Nationwide have all been invited to a meeting with the chancellor on Wednesday.

The meeting is believed to form part of Labour’s strategy aimed at revitalising financial services as a key driver of economic expansion.

Expected attendees include Georges Elhedery, CEO of HSBC Holdings; Debbie Crosbie, CEO of Nationwide; Charlie Nunn, Chief Executive of Lloyds Banking Group; Paul Thwaite, CEO of NatWest as well as senior representatives from Barclays and Santander UK.

REPORTING SEASON

The timing of the meeting coincides with the commencement of the full-year results reporting season for UK-listed banks, with Barclays set to release its 2024 financial results on Thursday.

The backdrop to these discussions is a challenging economic environment, exacerbated by last week’s downward revision of the UK’s growth forecast by the Bank of England.

Industry insiders told Sky News that bank leaders are expected to provide input on strategies to support economic momentum, with mortgage lending, housing market stability and financial services innovation likely to be key discussion points.

The Treasury declined to comment on the discussions, while the invited lenders also remained tight-lipped ahead of the meeting.

LENDING LIMITS

Bank of England governor Andrew Bailey faces MPs questions at Treasury committee.

Mortgage Soup revealed last month that the Bank of England (BoE) had warned that easing mortgage lending restrictions could lead to higher home repossessions and may not effectively support first-time buyers.

Governor Andrew Bailey told MPs at a Treasury committee meeting at the end of January that while he welcomed an open debate on the issue, policymakers must consider the benefits that the existing rules had provided in safeguarding financial stability.

Bailey told the meeting that existing mortgage restrictions had helped prevent excessive risk-taking, particularly during economic downturns.