According to reports, UK's biggest five banks, recently announced that in the past three months, they have extended their plans to provide loan to UK companies.

However, all the five bank’s officials declared that the main aim behind this move was that they strongly wanted the UK’s economy to come back on the right track, as the current monetary problems extension problems, forced the government targets to become still.

The result season has gained momentum and now all eyes turn to Lloyds and RBS. Next week these two part-nationalised banks will take their turn in the spotlight as they will announce their annual results.

Barclays has already announced its annual financial result and there has been hike in its net profit. It has said that the annual net profit of the firm has gone up by 32%.

It has been unveiled by Barclays that it had paid just £113m as corporation tax for the year 2009. It has also informed that the company had posted pre-tax profits of £11.6bn.

Its bills were low because it had made losses on bad loans. This has been claimed by the bank today. This information was released in a letter which was given by chief executive Bob Diamond to Chuka Umunna. He is a member of the Treasury Select Committee.

On Wednesday, Societe Generale SA announced that during the fourth quarter of this year, it saw the net profit quadrupling as compared to the previous year mainly driven by its continued recovery from the economic downturn and that has been possible because of the retail banking side. Even its corporate investment side has seen a rebound and the bad loans are going down.

The French bank is the second biggest lender after BNP Paribas SA. SocGen has also confirmed that it has managed to achieve the target set by it and saw its net income at around EUR6 billion in 2012.

An explanation is needed from Bank of England to tell as to what was the reason behind their underestimation of steeply rising inflation. The VAT rates are going up and so is the price of oil. Commodity prices along with food ones are not very different.

That is the reason why the consumer price index (CPI) has reached a rise of 4 per cent. This is worrying since the figures are double of what had been expected this time. Even the Retail Price Index (RPI) has seen a rise and is up between 4.8-5 per cent. This index also includes the house prices.

Project Merlin, has been finally joined in by the four largest banks in UK. These are the HSBC, Barclays, RBS and Lloyds and the information was given by George Osborne to the House of the Commons.

If the project is able to rebuild the bank's relationship with the society, then its objective will be solved and that it is certainly going to be a good news. But there are stipulations in it that may make it unattractive.

The whole idea of rip-off charges is going to be investigated. These are the levies that are imposed by airlines, cinemas and even government agencies on customers when they make payment through plastic.

At present, the banks are charging businesses juts 10p for debit card sale, but the companies and retailers are allowed to charge close to 50 time of that amount on the customers. Moreover, there are complaints where firms have been said to be inflation the processing fees so that they can make profit out of it.

Time is running out for the Governor of Bank of England Mervyn King in the wake of the weakness in the economy forces policy makers to endure rising inflation and abstain from raising rate of interest.

With sixty two economists in a Bloomberg News survey mentioning, that the bank will leave its benchmark interest rate at a record low of 0.5% today, investors have added to bets on a rise in the former year half. According to ex-rate setter DeAnne Julius the bank

requires to make the policy tight sooner than later or else have a threat of losing its credibility.

Royal Bank of Scotland Group Plc, the largest bank owned by the Government of U. K., is slated to be the lender that will be hit the most by yesterday’s deal with the Treasury for restricting the bonuses and encourage lending, according to analysts. At the end, it might be the British taxpayers who will have to bear the whole cost.

RBS has reduced the bonus amount for investment bankers by 27% to less than 950 million pounds ($1.5 billion), according to the lender bank that amounts to below 50% of the 2.2 billion pounds Barclays Plc had kept aside for bonuses by third quarter end.

As Royal Bank of Scotland (RBS) withdrew from Soteria consortium for privatising Britain's search and rescue operations, the Ministry of Defence Police are now investigating how the commercially sensitive information got into the hands of the bidder.

The £6billion helicopter contract information fell into the hands of the Royal Bank of Scotland-backed consortium bidding. The bidding was supposed to replace Britain's ageing fleet of Sea King helicopters for privatisation of Britain's search and rescue operations.

It is expected that the policy makers of Bank of England are going to have a meet on Thursday. That has raised fears in the market that rates are going to see a sharp rise since inflation is totally out of control.

One can also expect that the after effects of the last meeting of Bank's Monetary Policy Committee are going to come into play as at time there was an opinion of keeping a hawk-eye on the economy. Two the members had even called for a rate hike in between 0.5-0.75 per cent. Only one of the team members supported the idea of putting in more money into the economy.

The Reserve Bank of Australia has announced the bank rates. It has informed that there will be no change in its standard rate. It would examine the upcoming impact on growth and rise of flooding across the nation's east coast as stated by RBA.

A survey was done by the Bloomberg News, it had included 22 economists. They have forecasted that Governor Glenn Stevens left the overnight cash rate target at 4.75 percent in Sydney.

The managers of government stake in big banks like RBS and Lloyds have defended the structure of the banks and has shown its disregard for breaking them into separate entities of retail and investment arm.

Chairman of UK Financial Investments, Sir David Cooksey has argued and said that if these two banks are broken down then that would greatly destroy their value.

The institute is the one that handles government's shares to the lenders. He has clearly shown his rejection to the argument that calls for these units to be broken down into retail and investment.

Many experts are suggesting that now is a high time for getting a fix rate mortgage as the Bank of England could announce an increase in interest rate to fight back inflation.

The Bank of England left base rate at its record low of 0.5 percent this month, but an increase is believed to be just around the corner.

Once the base rate goes up, people with variable rate mortgages will have to face heavy payment bills.

Sir John Vickers, chairman of the Independent Commission on Banking, indicated the government could be suggested to split to Britain's high-street banks to protect taxpayers from future collapses.

Economist Vickers, former chief economist of the Bank of England, said that splitting banks into retail and investment businesses could better save the broad financial network. The suggestion indicates that banking giants like Barclays and Royal Bank of Scotland could be forced to restructure sometime in future.