London: Despite a current GBP129 billion shortfall
, the UK's seven largest banks (including Nationwide, the largest building society) will all likely meet the Bank of England's minimum requirement for own funds and eligible liabilities (MREL) by the time it comes into force, says Moody's Investors Service in a report published today.
That gap leaves the state with an overall revenue shortfall
But households in East Anglia and the North of England both saw slight rises in their typical monthly shortfalls
. In East Anglia, shortfalls
increased from pounds 25 in January to pounds 43 by July and in the North they rose from pounds 25 in January to pounds 34.
Investors will be able to make up some of the shortfall
from windfall shares they collected when Standard Life floated last year.
Steve Credie, managing director of Seeing Red, said: "Homeowners in the South and those over 40 are most at risk of severe shortfalls
The new legislation will have far reaching implications for both companies and lenders looking to restructure firms or dispose of subsidiaries where there is a significant pensions shortfall
in either the business itself or the selling group.
Barclays paid it on the grounds that the adviser had not checked whether Donald could pay his mortgage beyond retirement, told him an endowment was better than a repayment mortgage, that it was sure to pay off his mortgage and provide a cash lump sum and failed to warn him of any risk of a shortfall
There is a shortfall
in the monthly income coming from the WRU at the moment, but new businesses always present cashflow challenges.
The insurers said people whose policies were unlikely to be big enough to repay their mortgages face shortfalls
averaging pounds 3,500 for Prudential-branded endowments to pounds 7,000 for those of Royal & Sun Alliance.
Mymortgagealert.com says homeowners with the average shortfall
of pounds 13,000 paying a standard rate of 5.54 per cent can easily find a better deal.
The research also found that 96 per cent of people said they had heard about the problems with endowments, with 78 per cent saying shortfalls
or the current investment performance were the key issues.
Analysts are predicting the shortfall
will rip pounds 10 million from the group's interim pre-tax profits, taking the expected amount to pounds 5 million.