Big banks are raking in billions in profit, and we all pay the price – time for a new windfall tax | Fran Boait

Rises in interest rates are driving unemployment, low wages and poverty while the banks make record profits and hand out huge bonuses

Another week, another corporate monopoly recording huge profits off the backs of millions struggling to pay bills, feed their families and keep the lights on. This time it’s the turn of the big banks, which are reporting record profits driven by the interest rate hikes that the Bank of England has continued to ratchet up, despite its own admission that this may do little to bring down inflation, which is driven by high fossil fuel prices.

Today HSBC reported doubling its quarterly profits to £4.3bn for the end of 2022. The big five banks – Barclays, HSBC, Lloyds TSB, NatWest and Standard Chartered – look set to post profits of £37.4bn as they reveal their earnings for 2022. These are the highest since the 2008 crash and are coming straight from households and small businesses in the form of higher mortgage payments, and increased rates on loans. Banks are also set to receive £150bn in the next six years from the Bank of England paying interest on the risk-free reserves banks hold with the central bank, an average of £25bn a year essentially just for sitting on cash.

Fran Boait is executive director of campaign group Positive Money

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from The Guardian https://ift.tt/kClhcay