trending Market Intelligence /marketintelligence/en/news-insights/trending/nV-T5y06G2alB7e1-FMxwg2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

FCA proposes amendments to rein in overdraft market

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory


FCA proposes amendments to rein in overdraft market

The Financial Conduct Authority on Dec. 18 proposed changes to the overdraft market to better protect consumers from high costs and unexpected fees.

Lenders made £2.4 billion from overdrafts in 2017, with about 30% from unarranged overdrafts. In 2016, more than 50% of lenders' unarranged overdraft fees came from 1.5% of customers, according to the FCA.

"It is clear to us that the way banks manage and charge for overdrafts needed fundamental reform," said Andrew Bailey, CEO of the FCA. "We are proposing a series of radical changes to simplify the way banks charge for overdrafts and tackle high charging for unarranged overdrafts. These changes would make overdrafts simpler, fairer, and easier to manage."

The regulator has proposed a simple, single overdraft interest rate of fixed daily or monthly charges. In addition, banks will no longer be allowed to charge higher prices when customers use an unarranged overdraft, and fixed fees for borrowing via overdrafts will be banned.

Banks will also be required to advertise arranged overdraft prices along with the annual percentage rate so customers can compare services. They will have to issue new guidance that refused payment fees should fairly mirror the costs of refusing payments along with an explanation of what the costs might be.

Finally, the changes will obligate banks to do more in identifying overdraft customers experiencing financial troubles and help them reduce their overdraft usage.

The FCA has already asked banks and building societies, following a consultation in May, to provide customers with digital overdraft eligibility tools, overdraft charge calculators and alerts to show overdrawn balances at cash machines in order to mitigate unexpected overdraft usage.