This country has experienced two successive quarters of economic contraction.  That makes a recession.  In this period of recession the banks that dominate the market in this country have done very well.  Of the big three only one has experienced a reduction in profit based on the preceding period and that is due to there having been a sale in the preceding period of a limb of its business.  What I see is that while everyone else has been tightening their belts, the banks have done just fine.  Have they trimmed their profits to help support the larger economy?  That would not appear to be the case.  They seem less concerned with being a contribution to the economy than with taking.

That may be a harsh indictment upon the banks.  That may not do justice to the role the banks play in supporting the economy and the importance of the banks being stable and able to survive.  The global financial crisis of 2008 and 2009 is a relatively recent reminder of the calamity that can follow the collapse of a bank that has lost its financial foundations.  Even this year, three banks in the United States of America collapsed in rapid succession sparking fears of another more large scale collapse. Banks are businesses with shareholders and are expected to generate dividends for those who have invested in them.

Yet, it does seem harsh that at a time when many individuals and businesses are struggling or failing the banking sector should remain recession proof.  It appears somewhat unreasonable that the banks should maintain the margin that they charge above the official government lending rate in times of increasing inflation when the cost of a visit to the supermarket is increasing at a rate not manageable by most ordinary budgets.

Recession-proof: