PRESS DIGEST - Financial Times - Oct 6

Financial Times

STEEP RISE IN CREDIT PROTECTION PAYMENTS

According to figures to be released on Tuesday by the Asset Based Finance Association, lenders paid out almost 50 per cent more to companies in credit protection payments in the year to June 30 than in the previous year. The figures showed that lenders that underwrote portions of a company's invoices paid out 21.2 million pounds during the period, compared with 14.4 million pounds during the previous 12 months. Kate Sharp, chief executive of the ABFA said: "These figures show that the asset-based finance industry, and the wider economy as a whole, are still suffering the impact of the recession."

FSA'S NEW LIQUIDITY REGIME FOR BANKS STEALS MARCH ON OTHER REGULATORS

New liquidity requirements imposed by the Financial Services Authority could force UK banks and investment companies to increase their holdings of cash and government bond holdings by 110 billion pounds and curb their reliance on short-term funding by 20 per cent in the first year alone. Further reforms to the requirements over coming years could mean that banks are forced to increase their holdings of easily saleable assets by a total of 370 billion pounds.

GROWTH IN SERVICE SECTOR POINTS TO ECONOMIC RECOVERY