Banks are braced for a sharp drop in business

By DAILY MAIL REPORTER
Updated:

The banking industry is braced for a grim start to the year - despite a boom in the past few months.

The financial sector is prepared for a significant fall in business, ending six months which has seen prices soaring.

Some 32 per cent of financial firms reported a rise in business during the final quarter of last year, compared with 28 per cent who reported a fall, according to the Confederation of British Industries.

stair Darling

Chancellor Alistair Darling was relying on a banking resurgence to help drag Britain out of recession

The resulting 'balance' of 4 per cent was down from 7 per cent in the third quarter.

But a balance of 13 per cent of banks, building societies and insurers are now steeling themselves for a fall in activity.

It is a blow to the Treasury, as Chancellor Alistair Darling was relying on a recovery in banking to help drag the economy out of what is now the longest recorded British recession.

Credit cards lifeline for 'desperate' homeowners

More than one million people have been forced to use their credit card to pay their mortgage or rent over the past year, research shows.

The findings, from housing charity Shelter, highlight the 'desperate' plight of people struggling to stay financially afloat. Many could be made homeless this year.

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