Corporate banks await outcome of spending review

Corporate banks and Britain as whole are awaiting the government's spending review, due to be announced today (October 20th) at 12:30 BST.

The plans will set out ways to reduce public expenditure and so cut the country's deficit, which some believe will stifle economic recovery if stringent measures are not taken immediately.

Those in corporate banking are likely to take an interest in possible measures to control activities in the financial services sector, which some believe should be forced to raise credit reserves in order to avert a banking crisis of the magnitude seen in autumn 2008.

Opposition to the austerity measures comes from those who say the cuts will be too severe, while some believe the government should wait until economic recovery is more firmly established before trimming public spending.

Among the departments expected to bear the brunt of the review are the Ministry of Justice, which the Guardian reports could have its budget pared by up to 30 per cent, while infrastructure project Building Schools for the Future has already had its funding significantly reduced.  ADNFCR-2318-ID-800126204-ADNFCR