Report: More UK banking job cuts likely

19 March 2012

Further job cuts are likely to be implemented in the British banking industry in the near future, a new report has indicated.

According to a study published by accountancy firm KPMG today (March 19th), financiers across the country are facing a situation whereby their profits are put under increasing amounts of pressure in the coming months.

The organisation noted that the cost of implementing the proposals on lenders' capital ratios put forward by the Independent Commission on Banking (ICB) will have a significant impact on the balance sheets of many companies.

Bill Michael, UK head of financial services at KPMG, commented that the price of regulatory reforms is "starting to bite" and will "not ease off anytime soon" as the ICB changes start to be implemented.

"Against this backdrop, future profitability is a key concern for retail banks and I anticipate additional price increases for customers. Further job cuts are also inevitable," he added.

By Claire Archer

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