Lloyds shares rose 4pc, while shares in RBS increased 0.7pc after the Government unveiled plans for a charge on the global balance sheets of every UK bank with assets over a certain threshold.
Analysts – who had been expecting a more punitive measure – said the new levy, which will come into force in January, was not as bad as it could have been. The levy was announced in Tuesday's Budget.
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Ben Brogan: Osborne delivered the unvarnished truth Ian Gordon, a banks analyst at BNP Paribas, in a note titled "UK Bank Levy: Bark Worse Than Its Bite?," said the impact would be less than had been expected and more widely spread.
"As things turned out, for all the pre-election vitriol aimed at the UK banking system, the impact of today's measures appears materially lighter than expected, especially with the burden being broadly spread," he argued.
In its first year the levy is forecast to bring in tax revenues of £1.15bn, based on a 0.04pc tax on the total size of each bank's assets.
The tax will increase in its second year to 0.07pc, taking revenues to £2.32bn, rising to £2.5bn the following year.
Ratings agency Fitch said the levy would have "no impact" on its ratings of any UK bank.
"The sums payable under the levy look manageable in the light of banks' pre-tax profits and should not lead to rating changes," said Matthew Taylor, a senior director in ratings agency Fitch's financial institutions team.
Announcing the levy, which has been agreed in conjunction with the French and German governments, Chancellor George Osborne said it was "fair and right that in future banks should make a more appropriate contribution which reflects the many risks that they generate".
"This was a crisis that started in the banking sector and the failures of the banks imposed a huge cost on the rest of society," said Mr Osborne.
Responding to the announcement the British Bankers' Association (BBA) released a statement saying the banking industry "fully understands the part it must play in helping the UK's economic recovery".
However, investment banking lobby group the Association for Financial Market in Europe (AFME) said the levy could hurt Britain's ranking as major financial centre.
Mark Austen, acting chief executive of the AFME, said: "A unilateral UK bank levy could adversely affect an important sector of the UK economy and threaten the UK's future as the world's leading financial centre."
"The banks are committed to working with the Government to ensure new bank levies balance tax-raising objectives with the need to keep the recovery moving, and for banks to contribute to economic growth through continued support for the wider economy by lending to businesses and individuals," said the BBA.
The main area of controversy surrounding the new levy is the issue of double taxation as last year the US announced plans for a bank levy of its own. The US tax would hit several major UK banks with large American operations, including Barclays, HSBC and RBS.
These banks potentially face the prospect of being taxed twice on the same assets, according to lawyers, who said the UK government must reach an agreement on tax relief with their US counterparts.
Tony Anderson, a banking partner at international law firm Pinsent Mason, said there were many questions surrounding reciprocal arrangements.
"The Chancellor has stated that such levies will also be introduced in France and Germany. Considering the current exposure of French and German banks to defaulting borrowers in the Eurozone, there must be concern for the impact of multiple, accumulating levies on these banks at a time when they are being encouraged to lend more to businesses," said Mr Armstron.
Tuesday, June 22, 2010
Monday, June 7, 2010
Watch out for this new online phishing scam which uses 'tab napping' to attack your computer - and your finances...
As internet users we’re all vulnerable to online scams. Unluckily for us, as soon as we become pretty good as spotting one type of attack, another more sophisticated version comes along in its place. In fact, technology company, Mozilla - which developed the Firefox web browser - has recently warned against a possible threat from a new scam known as ‘tap napping’ which takes phishing one step further.
What is tab napping?
Tab napping is essentially a new kind of phishing scam. Until now phishing has involved sending hoax emails in an attempt to steal your usernames, passwords and bank details. Often the sender will claim to be from your bank and will ask you to verify your bank details by clicking on a link contained in the email.
The link actually directs you to a fake website which looks just like your bank's own website. Once you have typed in your login details they can be accessed by the criminals who set the fake site up.
But we’re beginning to wise up to phishing attacks like this, and many of us know we should be very wary of clicking URLs even if they appear to be in a legitimate email.
With awareness of phishing on the up, making it more difficult for scammers to succeed, tab napping could be the scam to watch out for next.
Rachel Robson reveals five of the worst scams around...
How does tab napping work?
Tab napping is more sophisticated than the phishing scams we’ve seen so far, and it no longer relies on persuading you to click on a dodgy link. Instead it targets internet users who open lots of tabs on their browser at the same time (for example, by pressing CTRL + T).
How does it work? By replacing an inactive browser tab with a fake page set up specifically to obtain your personal data - without you even realising it has happened.
Believe it or not, fraudsters can actually detect when a tab has been left inactive for a while, and spy on your browser history to find out which websites you regularly visit, and therefore which pages to fake.
So, don't assume that after you have opened a new tab and visited a web page, that web page will stay the same even if you don’t return to it for a time while you use other windows and tabs. Malicious code can replace the web page you opened with a fake version which looks virtually identical to the legitimate page you originally visited.
How might tab napping work in practice?
Imagine you open the login page for your online bank account, but then you open a new tab to visit another website for a few minutes, leaving the first tab unattended. When you return to your bank’s site the login page looks exactly how you left it. What you haven’t realised is that a fake page has taken its place, so when you type in your username and password, you have inadvertently given the fraudster easy access to your account.
Donna Werbner gets your two pence on the scams you hate, and finds out how you can protect yourself and stop the scammers from stealing your cash.
Even if you have already logged into your bank account before opening another tab, when you return you might find you’re being asked to login again. This may not necessarily rouse any suspicion since you might simply assume your bank has logged you out because you left your account inactive for too long. You probably won’t even think twice before logging in for a second time. But this time round you have accidently inputted your security details into a fraudster’s fake page which have been sent back to their server.
Once you have done so, you can then be easily redirected to your bank’s genuine website since you never actually logged out in the first place, giving you the impression that all is well.
How can you protect yourself against tab napping?
This is pretty scary stuff but thankfully tab napping should be relatively easy to avoid. Here are five simple ways you can prevent yourself from falling victim:
Make sure you always check the URL in the browser address page is correct before you enter any login details. A fake tabbed page will have a different URL to the website you think you’re using.
Always check the URL has a secure https:// address even if you don’t have tabs open on the browser.
If the URL looks suspicious in any way, close the tab and reopen it by entering the correct URL again.
Avoid leaving tabs open which require you to type in secure login details. Don't open any tabs while doing online banking - open new windows instead (CTL + N).
Finally, take a look at Online banking: How to stay safe to find out other ways to protect yourself from online scams.
What is tab napping?
Tab napping is essentially a new kind of phishing scam. Until now phishing has involved sending hoax emails in an attempt to steal your usernames, passwords and bank details. Often the sender will claim to be from your bank and will ask you to verify your bank details by clicking on a link contained in the email.
The link actually directs you to a fake website which looks just like your bank's own website. Once you have typed in your login details they can be accessed by the criminals who set the fake site up.
But we’re beginning to wise up to phishing attacks like this, and many of us know we should be very wary of clicking URLs even if they appear to be in a legitimate email.
With awareness of phishing on the up, making it more difficult for scammers to succeed, tab napping could be the scam to watch out for next.
Rachel Robson reveals five of the worst scams around...
How does tab napping work?
Tab napping is more sophisticated than the phishing scams we’ve seen so far, and it no longer relies on persuading you to click on a dodgy link. Instead it targets internet users who open lots of tabs on their browser at the same time (for example, by pressing CTRL + T).
How does it work? By replacing an inactive browser tab with a fake page set up specifically to obtain your personal data - without you even realising it has happened.
Believe it or not, fraudsters can actually detect when a tab has been left inactive for a while, and spy on your browser history to find out which websites you regularly visit, and therefore which pages to fake.
So, don't assume that after you have opened a new tab and visited a web page, that web page will stay the same even if you don’t return to it for a time while you use other windows and tabs. Malicious code can replace the web page you opened with a fake version which looks virtually identical to the legitimate page you originally visited.
How might tab napping work in practice?
Imagine you open the login page for your online bank account, but then you open a new tab to visit another website for a few minutes, leaving the first tab unattended. When you return to your bank’s site the login page looks exactly how you left it. What you haven’t realised is that a fake page has taken its place, so when you type in your username and password, you have inadvertently given the fraudster easy access to your account.
Donna Werbner gets your two pence on the scams you hate, and finds out how you can protect yourself and stop the scammers from stealing your cash.
Even if you have already logged into your bank account before opening another tab, when you return you might find you’re being asked to login again. This may not necessarily rouse any suspicion since you might simply assume your bank has logged you out because you left your account inactive for too long. You probably won’t even think twice before logging in for a second time. But this time round you have accidently inputted your security details into a fraudster’s fake page which have been sent back to their server.
Once you have done so, you can then be easily redirected to your bank’s genuine website since you never actually logged out in the first place, giving you the impression that all is well.
How can you protect yourself against tab napping?
This is pretty scary stuff but thankfully tab napping should be relatively easy to avoid. Here are five simple ways you can prevent yourself from falling victim:
Make sure you always check the URL in the browser address page is correct before you enter any login details. A fake tabbed page will have a different URL to the website you think you’re using.
Always check the URL has a secure https:// address even if you don’t have tabs open on the browser.
If the URL looks suspicious in any way, close the tab and reopen it by entering the correct URL again.
Avoid leaving tabs open which require you to type in secure login details. Don't open any tabs while doing online banking - open new windows instead (CTL + N).
Finally, take a look at Online banking: How to stay safe to find out other ways to protect yourself from online scams.
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