National Australia Bank Ltd.'s restructuring of its U.K. operations is on track and the unit is now profitable, however it continues to face challenges in a difficult U.K. market, its chief executive said, The Wall Street Journal MarketWatch reported. Consumer and business confidence in Australia also remains "fragile," and both companies and individuals here will likely remain reluctant to commit to major investments until sentiment regarding the economic outlook improves, Cameron Clyne said Sunday in an interview with Australian Broadcasting Corp.'s Inside Business program. Mr.

The government has launched a review of pre-pack insolvencies, the controversial practices that can enable companies to dump pension liabilities, Professional Pensions reported. The Department for Business, Innovation and Skills said the review, announced during a parliamentary debate, would begin in "late spring" although a timescale had yet to be set. Pre-packs involve arranging the sale of a business before an insolvency is triggered, with the transaction going through as soon as an administrator is formally appointed.

The UK government’s Insolvency Service is all but insolvent, the Financial Times reported. Experts suggest the group, which polices bankrupt companies, liquidates failed businesses and disqualifies unfit directors, would be broke had it not received an emergency injection of cash from the government. After reporting an underlying deficit of £12m last year, the agency is heading for a deficit of £5m to £7m for 2012-13, according to Whitehall officials.

The Bank of England warned on Thursday that the next phase of the UK's six-year financial and economic crisis may be triggered by the collapse of debt-laden companies bought by private equity firms in the boom years before the crash, The Guardian reported. In its latest quarterly bulletin, Threadneedle Street said the need over the next year to refinance firms subject to heavily leveraged buyouts posed a systemic threat.

British banks have been suffering amid dismal earnings, scandals and regulatory investigations, but three of the country’s largest financial firms handed out seven-figure pay packages to hundreds of employees last year, The New York Times DealBook blog reported. The disclosures this week add to the growing debate over compensation, as regulators look to rein in bankers’ pay.

Britain will resist calls to impose far stricter rules on how much banks can leverage their capital for investments and lending, insisting that there is no need to do so before 2018, Reuters reported. The government is forcing banks to limit leverage to 33 times their capital, in line with international regulations, and rejected a call on Monday from a panel of parliamentarians to stiffen the rules to curb risk-taking even more.

Britain should force all banks to split routine retail operations from riskier investment activities if a single lender abuses new rules designed to protect taxpayers, an influential panel of lawmakers said, Reuters reported. The Parliamentary Commission on Banking Standards, which has been asked to find ways to reform banks, also said on Monday that Britain's financial regulator should be given the responsibility to decide how far banks can leverage their capital for investment and lending. The government's Banking Reform Bill is due to be debated in parliament on Monday.

Royal Bank of Scotland is understood to have received a £1 billion bid from a consortium of institutional investors for more than 300 branches, The Scotsman reported. The state-backed lender is being forced to sell the assets, which comprise 311 RBS branches in England and Wales and five NatWest outlets in Scotland, in return for receiving £45.5bn in UK government aid during the financial crisis. Spanish bank Santander pulled out of a £1.65bn deal in October and RBS chief executive Stephen Hester has admitted that the group was struggling to find another buyer.

Prime Minister David Cameron will promise on Thursday to stick to his government's deficit reduction plan despite the loss of his country's top-notch AAA credit rating, saying Britain would plunge "back into the abyss" if he changed course, Reuters reported. Speaking ahead of a March 20 budget that will be dissected by the markets and ratings agencies alike, Cameron said there were signs his government's economic policies were beginning to work and that it was imperative to "hold firm to the path".

India has accused Cadbury PLC of dodging about $46 million in taxes by pretending to produce candy at a factory that didn't exist. A 103-page report by the country's tax authorities, which was reviewed by The Wall Street Journal, accuses Cadbury's Indian unit of manipulating invoices and other documents to get a tax exemption available to companies that began production in new plants in the northern Indian state of Himachal Pradesh by March 31, 2010.