We are The voice
May says UK won’t “cherry pick” from EU benefits after Brexit
UK Prime Minister Theresa May has said that the UK will not seek to cherry pick elements of EU single market access, ahead of a meeting with French Prime Minister Bernard Cazeneuve today (Sky News, online). Writing in Le Figaro she committed to prioritising a reciprocal deal to protect the rights of UK and EU nationals working overseas, and highlighted the need for continued cooperation on security and defence.
US banks call for overhaul of AML regime
The Clearing House group of US banks has called for the US Treasury’s Financial Crimes Enforcement Network to be given oversight of banks AML compliance, while banks should investigate transactions based on specific concerns made by law enforcement agencies (Financial Times, £ online). Reuters (online) reports that the current system incentivises banks to file a high volume of low value reports on potentially suspicious transactions.
City supports reforms to corporate governance
The Daily Telegraph (£, B1) covers the BBA’s response to the Government’s consultation on reforms to corporate governance, noting that the banking sector believes that it may be too early for a further revision to the remuneration regime.
French Senate sets out red lines for Brexit deal
A cross-party report by the French Senate has concluded that no deal with the UK is preferential to the UK securing a Brexit deal that leaves it better off than it is now (The Guardian, p9). The report describes freedom of movement in goods, people, services and capital as inseparable, noting that, “it must not be possible for Britain to segment access to the tariff-free single market for certain sectors” (The Independent, online only).
Customers willing to queue for up to three minutes at ATMs
Research by University College London has found that customers consider a wait of up to three minutes at ATMs and four minutes and twelve seconds at bank branches to be “reasonable”. They are unlikely to join a queue of more than six people (The Daily Telegraph, £, p3). The BBA’s Way We Bank Now report describes consumers’ changing interaction with banks.
Fall in EU nationals working in the UK
The Financial Times (£, p3) notes that the number of EU nationals employed in the UK fell by 19,000 to 2.2 million last quarter, driven by concerns over Brexit. The Chartered Institute of Personnel and Development’s Labour Market Adviser, Gerwyn Davies, commented that, “the figures . . . offer further evidence that Brexit has had a discernible impact on the allure of the UK as a place to live and work.” Reuters (online) reports that large banks are not scaling up the size of their trading teams, despite recent increased revenue.
Paul Chisnall, BBA Executive Director, Financial Policy & Operations, blogs on progress towards a common disclosure framework for climate change, and next steps for putting this into practice.
The BBA and Pinsent Masons have identified seven hurdles that banks face in adopting cloud technology, and have established a Cloud Computing Working Group to help banks, services providers and regulators develop common solutions to these issues.
FCA consults on changes to listing rules
The FCA has proposed changes that would allow overseas companies to list in London without meeting the requirements on ownership and control required under the current regime for a premium listing. The consultation paper notes that “a highly international market like the UK should be at the centre of listing activity, supporting dynamic and emerging economies” (Financial Times, £, p18). City AM (p10) also reports that the regulator is considering measures to increase retail participation in debt capital markets. The consultation is available here.
UK leads on banking and technology developments
The Times (£, p39) writes that the UK is second only to South Korea in the development of Open Banking standards that allow third parties to provide retail banking services. The paper notes that innovation charity Nesta has launched a £5 million bank-funded prize to encourage the development of banking apps for small businesses. The Financial Times (£, online) notes that banks in other jurisdictions have adopted consumer-tech features, for example, “opening up Facebook branches, or allowing users to swap instant messages with their bank manager via Messenger.”
Yellen signals US rate rise
BBC News (online) reports that US Federal Reserve Chair Janet Yellen has said that it may be appropriate to raise interest rates ahead of the Fed’s next monetary policy meeting in March. City AM (p1) notes that this caused the dollar to rise against a number of other currencies, including sterling, while The Times (£, p35) writes that her comments were a, “thinly veiled warning” to President Trump that his economic plans will have a significant negative impact on the US fiscal position.
Firms face cyber-threat staff shortage
Sky News (online) reports that 66% of British companies do not employ enough specialist staff to deal with cyber security risks. Chancellor Philip Hammond is expected to call for businesses to do more to guard against cyber threats at today’s launch of the National Cyber Security Centre, noting that although 65% of large firms reported a cyber-attack in the last year, only one in ten has an incident management plan (The Daily Telegraph, £, online).
Investors consider creating new US banks
The Financial Times (£, p16) reports that the US Federal Deposit Insurance Corporation is considering applications for six new bank charters, prompted by the prospect of stronger economic growth and lower taxes. Molly Flater, Chair of newly-opened US institution Blue Gate Bank noted that the outlook for banks of all sizes has improved, citing potential interest rate rises and more relaxed US regulation.
European Commission raises UK GDP projections
The European Commission has revised its growth forecast for the UK up to 1.5% this year, but warned of a likely slowdown in business investment driven by uncertainty over the post-Brexit deal in 2017 (The Times, £, p38). Meanwhile, City AM (p7) notes that UK firms relying on trade agreements between the EU and third countries may need to wait until equivalent deals are in place after Brexit.
FTSE 100 companies consider measures to curb executive pay
One in ten FTSE 100 companies may replace long-term incentive schemes with share-based bonuses or extend vesting dates in response to investor demands to reduce executive pay (Financial Times, £, p1). The Investment Association has called for the introduction of a “sin bin” for companies that repeatedly fail to engage with shareholders on executive pay, The Sunday Telegraph (£, online). The Sunday Telegraph also notes that, “as well as the “sin bin”, some institutions are expected to push for radical reform of Britain’s stock exchange listing rules”.
85% of banks ‘do not expect’ to move staff out of the UK following Brexit
Data from EY shows that the majority of banks do not plan to make major changes to UK staffing following Brexit, although 15% of 222 firms surveyed did expect to move some staff (The Daily Telegraph £, B3).
Commenting on the findings, EY’s UK Financial Services Leader Omar Ali said, “The number of financial services companies who have publicly said that they are making wholesale changes to their London operations is relatively small given the huge number of firms that comprise the sector”.
Banks face barriers to adopting cloud technology
Banks are turning to cloud technology to help meet demand for more innovative digital products and services, but face challenges around data security and regulation according to a report by the BBA and Pinsent Masons (City AM, p15). The BBA has established a working group to help address these issues. Read the full report is here.
Matthew Herbert, BBA Director of Strategy and Digital Policy, blogs on how banks can overcome the hurdles to adopting cloud technology.
Dombret warns on equivalence and Euro clearing
Andreas Dombret, who sits on the board of Germany’s Bundesbank, has warned that a post-Brexit deal based on equivalence would be a poor substitute for passporting, noting that, “equivalence decisions are reversible, so banks would be forced to adjust to a new environment in the event that supervisory frameworks are no longer deemed equivalent” (BBC News, online). He also said that without oversight by the ECJ, the bulk of Euro clearing activity was likely to move into the Eurozone.
CML data shows repossessions at record low
Housing repossessions have fallen to their lowest level for 35 years due to record low interest rates (The Times, £, p44). Data from the CML Lenders also shows that mortgages in arrears of over 2.5% fell by 7% last year. The Financial Times (£, online) reports that Paul Smee, CML Director-General warned that customers, “need to be ready for a time when the outlook may not be so benign, with pressure on real incomes increasing and as interest rates begin to move upwards again.”
Carney calls for BoE clearer communication
Bank of England Governor Mark Carney says that winning back public trust in banking will require the Bank to engage with a wider group of stakeholders using less technical language (City AM, p3). Speaking at a Bank event on diversity, he said: “to communicate to both the City and the country, the salon and the suburb, we need to create content that engages different audiences.”
European Commission considering options for UK access to EU financial markets
Valdis Dombrovskis, the European Commission’s Vice President responsible for financial services, has said that the City will continue to be a global financial centre after Brexit. Speaking to City AM (p1), he said the European Commission, is “looking at equivalence” and asking firms to establish, “substantial presences in the EU to maintain EU passporting” to ensure that the UK will retain access to EU financial markets.
Bank of England warns on risks of global fragmentation of regulatory standards
BBC News (online) reports that Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, has warned that moves to reduce regulation introduced after the 2008 financial crisis could undermine financial stability, commenting that, “in order to have a resilient financial sector and consistent regulation internationally we need international standards.” Sky News (online) summarises recent proposed changes to US banking regulation, noting that it would be impossible to come up with meaningful international rules on bank capital without the US.
Sir Mervyn King calls for hard Brexit
Former Governor of the Bank of England, Sir Mervyn King, has called for a hard Brexit, saying that the UK’s decision to leave the EU offers “real opportunities” for economic reform and that the UK would be better off if it also left the customs union (The Daily Telegraph, £, B1). He attributed the result of the referendum to the UK’s political system, which he said “does not give people a chance to vote on issues they really care about.”
Jacqueline Planner, Huntswood’s Director of Financial Crime blogs on the role of financial crime risk assessments.
Rob Driver, BBA Capital Markets Policy Director, blogs of target market criteria designed to increase investor protection that will be introduced under MIFID II.
MPs set for final vote on Brexit deal
MPs will have a final vote on the Brexit deal negotiated by the Government, however, the Prime Minister will not seek further talks with the EU leaders if Parliament rejects the deal (The Guardian, p1). Brexit Minister David Jones commented that, “there will be a meaningful vote…to accept the deal that the government will have achieved, or no deal” (City AM, p3).
Bank of England and ECB differ on Brexit risk
The Financial Times (£, online) also reports comments from Bank of England Governor Mark Carney, who warned that a severe Brexit could hurt EU 27 countries more than the UK, and remarks made by ECB President Mario Draghi who told told EU 27 negotiators that, “Brexit costs will be containable and concentrated in Britain”.
Unauthorised overdraft charges compared to fees for high cost short term credit
Which? Has compared fees for unauthorised overdrafts and payday loans, and called for the FCA to introduce a cap on unauthorised overdraft fees (The Sun, p28). The Times (£, p12) notes that banks have invested heavily in technology that warns customers about their financial position. Commenting on the data, the BBA said, “we would always encourage customers who think they might need to borrow money to speak to their bank to pre-arrange an overdraft facility, so they can be certain that payments will be made and keep borrowing costs down.”
Securitisation reforms stall over disagreements on equivalence
The Financial Times (£, online) writes that new rules designed to support the EU’s securitisation market are at risk of delay. Member states disagree over equivalence provisions that would grant non-EU companies the ability to create securities that comply with the new rules, subject to agreed levels of regulation in their home countries. A European Commission official said,“our original proposal was designed to turbo-charge STS securitisations in the EU. That’s why we wanted to keep the market access as open as possible to potential investors.”
Government announces new housing strategy
The Times (£, p1) reports that the Government has called for 250,000 new homes to be built each year, with a promise to, “tackle failures at every point in the system” as it launches a new housing strategy today. This will introduce a range of new measures, including new powers for local councils to force developers to build and reducing the time allowed between obtaining planning permission and the start of building BBC News (online).
Draghi criticises US protectionism
ECB President Mario Draghi has criticised President Trump’s plans to deregulate US banks, saying that, “The idea of repeating the conditions that were in place before the crisis is something that is very worrisome” (Sky News, online). He also said that the central bank remains ready to increase its quantitative easing programme if needed, citing weak economic growth in the Eurozone (City AM, p3).
Trump administration signals withdrawal from post-crisis reforms
Fed Chair Janet Yellen has been asked to stop US participation in negotiating Basel capital requirements. In a letter reported by The Times (£, online), Patrick McHenry, Republican Vice Chairman of the House Financial Services Committee criticised post-crisis reforms for reducing lending and economic growth by forcing US banks to hold more capital, saying “it is incumbent upon all regulators to support the US economy and scrutinise international agreements that are killing American jobs.”
Fund managers call for pay restraint
City AM (p3) reports that 13 fund management firms have agreed to curb excessive pay at the companies they invest in, noting that the deal follows the Government’s proposed reforms to the UK’s corporate governance framework. David Cumming, Head of Equities at Standard Life told the BBC’s Radio 4 Today programme that investors must do more to signal their unhappiness with “excessive” pay.
Schauble calls for “reasonable” agreement on financial services after Brexit
City AM (p1) reports that German Finance Minister Wolfgang Schauble has said that the EU should seek to agree reasonable rules with the UK on financial services after Brexit nothing that, “London offers financial services in a quality that is not found on the continent.” His full interview, with Tagesspiegel, is available here.
Dr Rebecca Harding, BBA Chief Economist, writes on the potential trade implications of the UK’s exit from the European Union.
Government publishes Brexit White Paper
The Government has published a White Paper on Brexit, which includes a commitment to, “the freest possible” trade in financial services and a “phased process of implementation” (BBC News, online). BBA Chief Executive Anthony Browne said, “The Government’s commitment to free trade in financial services and a phased process of implementation provides important clarity” (City AM, p2). The full White Paper is available here. The BBA’s Quick Briefs explain the main issues faced by banks and their customers and clients related to the UK’s exit from the EU.
Banks consider potential workarounds for UK operations
The Financial Times (£, p2) writes that banks are considering how they can apply existing arrangements to manage loss of access to the EU Single Market including internal risk transfers and delegation of business to a parent in another jurisdiction. However, regulators may raise concerns about this approach. Simon Gleeson, a regulatory partner at Clifford Chance, notes that, “from the perspective of the local regulator, back-to-backing is actually quite uncomfortable.”
Bank of England considers enforcement action over personal lending
The Times (£, p41) reports that Bank of England Governor Mark Carney has said that the Bank’s enforcement team is reviewing lenders’ behaviour to guard against “reckless” credit card and personal lending. The comments were made as the Bank published its latest growth and lending forecasts yesterday, which show consumer lending is growing at its fastest rate in 11 years. The Bank’s full inflation report is available here, and the BBA’s latest data on high street lending is available here.
Anthony Browne, CEO of the BBA said: The Government’s commitment to free trade in financial services and a phased process of implementation provides important clarity on the kind of relationship the UK will seek with the EU.
Government on track to trigger Article 50 by March 2017
MPs have voted in favour of a Bill that will allow the Government to trigger Article 50, with a white paper setting out the Government’s negotiating strategy to be published today (Financial Times, £, p1) The Guardian (p21) comments on a leaked report prepared for the European Parliament, which states that a, “badly designed final deal would damage both the UK and the other 27 EU member states” and notes that UK banks lend £1.1 trillion to EU 27 countries.
Financial Stability Board issues guidance on “living wills” for central counterparties
Reuters (online) report that the Financial Stability Board has published guidance designed to allow the orderly resolution of central counterparties, that would allow authorities to enforce outstanding contractual rights and require default fund contributions from non-defaulting members.
Prime Minister to propose building 300,000 new homes a year
The Sun (p8) reports that the Government is expected to publish a white paper calling for additional homes to be built in areas of high demand, with quotas to be imposed on local councils that do not meet these targets. The proposed measures will include steps to help smaller builders with limited access to credit.
City warns MPs about fragmentation, deregulation and Europe losing out if financial services business leaves the UK
The Times (paper only, £, p44), The Daily Telegraph (Bp5) and CityAM (p5) report on yesterday’s House of Commons International Trade Committee on trade options for the UK beyond 2019. Giving evidence, Anthony Browne, BBA’s Chief Executive, warned against a “bonfire of regulation” and said this was not opposition to deregulation “in principle” but that global coherence to regulation is preferable to retain vital market access in the EU. Asked by MPs about the EU27 potentially taking business away from the City, Chris Cummings, Investment Association’s Chief Executive, cautioned against the “great danger” of fragmentation and Gary Campkin, TheCityUK’s Director of Policy and Strategy, said ‘ the outcome of such a move needs to be considered by both sides of the Brexit negotiating table. The biggest risk of the wrong outcome is a situation where functionality goes not to Frankfurt, not to Dublin, but to New York or Singapore […] it is the European economy that will lose as a whole.”
Falling pound slows household borrowing
New figures from the Bank of England released yesterday showed that the monthly rate of consumer credit growth was 0.5 per cent between November and December, down from 1 per cent the previous month. This was the slowest rate of household borrowing for two and a half years, signalling consumers may be reigning in spending as they begin to feel the effects of the falling pound (The Times, £, p40). “We are always hesitant to call a trend from one month’s data, but the drop in consumer credit growth in December was sizeable,” said Liz Martins, UK Economist at HSBC, in The Financial Times (£, p3).
Germany is exploiting undervalued euro – Trump adviser
Peter Navarro, the head of Donald Trump’s new National Trade Council, told The Financial Times (£, p1) that Germany is using a weak euro to “exploit” both the US and the EU to get a competitive trade advantage. He also said the euro was like the “implicit Deutsche Mark” and that Germany was the main obstacle to a future US/EU trade deal (The Daily Telegraph, p1). In response to these comments, German Chancellor Angela Merkel clarified that Germany could not influence the euro and “is a country that has always called for the European Central Bank to pursue an independent policy, just as the Bundesbank did that before the euro existed. Because of that we will not influence the behaviour of the ECB. And as a result, I cannot and do not want to change the situation as it is” (Guardian, p22)
Data from the second Wealth of Opportunities report published today highlights the sector’s substantial social and economic contributions to UK plc, with around £825 billion of client assets currently managed or administered – comparable in value to around 40% of GDP.
The Private Banking and Wealth Management (‘PBWM’) industry, at its core, helps customers to invest their savings and manage their finances, while empowering them to look forward and build their futures with confidence.
MPs to debate Brexit
MPs are to begin a two day debate on the Bill that would enable the Government to trigger Article 50, with a vote scheduled tomorrow evening according to BBC News (online). The Guardian (p13) writes that the Bill is likely to pass without significant opposition, but notes that some MPs are likely to call for quarterly updates on the negotiations. The BBA’s Quick Briefs explain the main issues faced by banks and their customers and clients related to the UK’s exit from the EU.
EBA calls for EU ‘bad bank’
The European Banking Authority (EBA) has said that the EU’s level of bad debt poses an urgent problem, with lenders facing over €1tn of non-performing loans (Financial Times, £, p6). EBA Chairman, Andrea Enria, suggested one solution might be a taxpayer-backed fund to buy bad loans, ahead of a formal report on how to address this issue by the European Council, expected in March. The EBA’s analysis is available here.
BBA calls for Brexit transitional arrangements
Speaking to BBC Radio 4’s Today programme BBA Chief Executive Anthony Browne highlighted the importance of post-Brexit arrangements that allow UK-based banks to continue to serve their clients based inside the EU, and allow EU based banks to access UK markets, with phased implementation to avoid disruption to markets. Sky News (online) also reports that the BBA has called for a dedicated parliamentary sub-committee on Brexit to ensure EU banking legislation can be translated into UK law ahead of Brexit, to avoid a regulatory vacuum.
Banks face curbs to unsecured lending
The Bank of England is considering measures to reduce the amount of unsecured personal lending and credit card borrowing, following concerns that household debt is growing too quickly (Mail on Sunday, p89). The BBA’s most recent High Street Lending Statistics showed consumer credit grew by 6.6% in December 2016.
FSCS limit increased to £85,000
The Financial Services Compensation Scheme (FSCS) will protect deposits worth up to £85,000 from today. The scheme had been reduced to £75,000 in line with European rules, but has now been revised back to £85,000 following the recent marked fall in the value of the pound (City AM, p9). More information on the FSCS is available here.
Rebecca Harding, the BBA’s Chief Economist, blogs on upcoming meetings of the Fed, Bank of Japan and Bank of England this week.
Andrew Bailey calls for free trade in financial services
Andrew Bailey, CEO of the Financial Conduct Authority has called for financial institutions that meet globally agreed standards to access the European single market after Brexit, noting that “open financial markets are the best way to support trade in goods and services” (Financial Times, £ p3). The full speech is available here.
Theresa May and Donald Trump to discuss trade and foreign policy
Prime Minister Theresa May will meet President Donald Trump in the White House today, where they are expected to discuss a range of policy issues, including trade and the UK-US special relationship (The Times, £, p1). The Guardian (p7) reports that a suggested relaxation of the US regulatory regime for financial services may help compensate UK firms for a lower level of access to European markets.
Mortgage approvals rise as UK GDP grows 0.6% in Q4 2016
Data published by the Council of Mortgage Lenders (CML) shows mortgage borrowing totalled £245.7bn in 2016, up 12% from the previous year (The Daily Telegraph, £, Business p3), although the number of housing transactions fell after the EU referendum in June. The CML’s Senior Economist Mohammad Jamei said, “approvals for house purchase have recovered strongly of late, and this should feed through to lending figures in the early months of 2017.”
Carney warns that banks’ use of FinTech poses systemic risk
Bank of England Governor Mark Carney has warned that the use of innovative technology in banking could create new systemic risks (City AM, p3). Speaking at the G20 conference in Germany, he said that regulators are likely to consider whether more of these activities should be regulated, with a focus on capital requirements and management of operational and cyber security risks (The Financial Times, £, online).
Government to publish Article 50 legislation and Brexit plan
BBC News (online) reports that the government will publish legislation to allow the triggering of Article 50 within the next few weeks, and will also set out negotiating priorities for Brexit in a separate white paper. The Financial Times (£, p3) examines potential amendments to the bill, concluding that it is unlikely that there will be a parliamentary vote on the final deal, or that the legal status of EU citizens currently living in the UK will be confirmed before negotiations start.
BBA data shows a rise in borrowing
BBC News (online) reports that consumer credit grew by 6.6%, despite weak retail sales. Describing the data, the BBA’s Chief Economist Rebecca Harding says, “overall we’ve seen high levels of consumer and business borrowing, although there are early indications that 2017 could see softer demand for credit from business and households, as they anticipate future interest rate rises and wait for further clarity on Brexit.” Click here for the full BBA data.
Rebecca Harding writes that the BBA’s latest high street lending data shoes strong consumer and business borrowing, but highlighting reasons for caution if interest rates rise later this year.
Dr Rebecca Harding, BBA Chief Economist, said:
“Overall, we’ve seen high levels of consumer and business borrowing, although there are early indications that 2017 could see softer demand for credit from business and households, as they anticipate future interest rate rises and wait for further clarity on Brexit.
“Consumer credit continued to be strong in December despite weaker retail sales.
“Re-mortgaging approvals were 30% higher than December 2015, reflecting borrowers’ desire to “lock in” lower interest rates ahead of potential rise later this year.
“However, reduced demand for business borrowing may signal plans for investment are being deferred or funded through retained earnings until there is more certainty on the UK’s economic prospects after Brexit.”
Chris Rollason, Senior Risk Consultant at Jaywing, blogs on the operational impact of IFRS 9 and how it will changes banks’ offerings of longer dated revolving credit, credit card and exposures with a large undrawn limit.
Supreme Court rules that Parliamentary vote needed before triggering Article 50
The Independent (p5) reports that Brexit Secretary David Davis has announced that the Government will publish a “short and straightforward” Brexit Bill following yesterday’s Supreme Court ruling. The BBC (online) notes that a number of MPs have called for the Government to publish a white paper detailing negotiating priorities ahead of a Parliamentary debate on Brexit.
Industry calls for higher standards of corporate governance
The Financial Times (£, p3) reports that industry bodies representing company directors, trade unions and investors have written to the Prime Minister to appeal for measures to strengthen oversight of corporate governance, including a new regulator and a solution to “the problem of executive pay”. Reuters (online) reports that three of the five biggest investors in FTSE 350 companies have or intend to set out new guidance on pay ahead of annual general meetings later this year.
Survey reveals low levels of household saving and retirement concerns
Research by ING has found that one in four Britons do not have any savings, while one in three have access to savings worth less than three month’s pay. One in five also report concerns about how they will manage their finances once retired (Daily Mail, p22). Commenting on the findings, Ian Bright, a Senior Economist at ING said, “people across Europe are feeling the strain of lower interest rates – and losing motivation to save.”
Government loses Supreme Court decision on Article 50
The Supreme Court has today ruled that the government must consult Parliament before triggering Article 50, by 8 votes to 3 (BBC News). Speaking to Bloomberg TV, BBA Chief Executive Anthony Browne underlined the importance of ensuring an effective transition for financial services following Brexit, highlighting the need for clarity and phased post-Brexit arrangements to avoid any cliff edge effects. The BBA’s Brexit Quick Briefs summarise the major issues facing the banking industry and its customers in the UK and EU.
Banks and Post Office work together to increase over-the-counter services
The Financial Times (£, online) reports on an agreement between banks and the Post Office that will allow a significant proportion of personal and small business customers to access banking services via a local Post Office branch. Commenting on the decision, Margot James MP, business minister, said the development marked “the biggest expansion in branch banking services in a generation”. Commenting on the new agreement in the Telegraph (£, online) Anthony Browne said ““Nine out of 10 people now live within 20 minutes’ walk from a bank or a Post Office where they are able to do banking face-to-face with another person,”
European Union considers stress testing banks’ resilience to cyber attack
Reuters (online) reports that the European Union is considering introducing stress tests to assess banks’ ability to withstand cyber-attacks. The test would be introduced in addition to the stress testing carried out by national competent authorities, and could include, “cyber-threat information sharing or penetration and resilience testing of systems.”
IBM’s Andrew Graham highlights the need for banks to upgrade their operational resilience plans ahead of adopting new technologies.
From today, 99 per cent of UK personal bank customers and over 75 per cent of business customers can do their day-to-day banking at the Post Office, as a new industry-wide agreement with UK banks comes into effect. This will see the biggest expansion in face-to-face banking access in a generation.
City calls for clarity on post-Brexit arrangements as Article 50 judgement expected on Tuesday
The Sunday Times (£, p5) reports on banks’ preparations to change their operating models following Brexit. Highlighting calls for continued two-way accessibility between UK and EU markets, BBA Chief Executive Anthony Browne said: “Passporting is currently the only means of banks selling across borders and setting up branches in other EU countries without complicated regulatory approvals from member states.” Bloomberg (online) notes that the Supreme Court will rule on whether Prime Minister Theresa May must consult Parliament before triggering Article 50 tomorrow, and highlights two further legal challenges on Brexit.
Prime Minister May calls for a “high-skilled, high-paid” workforce for Britain; ahead of meeting President Trump to discuss US-UK trade deal
Prime Minister Theresa May writes that she is today launching a new industrial strategy with a focus on technical education and infrastructure spending to secure a “high-skilled, high-paid” Britain (The Independent, p5). The Daily Telegraph (£, p1) reports that May and President Trump will meet this week to discuss a new US-UK trade deal that is expected to reduce tariffs and make it easier for employees to move between both countries.
Strong economic growth in Q4 2016, however economists warn of 2017 slowdown
The Guardian (p22) reports that official statistics for economic growth are likely to show strong performance in the final quarter of 2017, but warns that this is expected to reverse in 2017. Investec’s Chris Hare comemnted that, “the UK economy has held up remarkably well”, but anticipated slower growth this year as a weakening sterling filters through into higher inflation and lower consumer spending.
Rebecca Harding, BBA Chief Economist blogs on what we know seven months on from the result of the UK’s decision to leave the EU.
Financing Growth has been produced to help small to medium-sized businesses identify some of the different finance options that may be available to expand their business, including information, tips and Read More
May says UK won’t “cherry pick” from EU benefits after Brexit UK Prime Minister Theresa May has said that the UK will not seek to cherry pick elements of EU Read More
French Senate sets out red lines for Brexit deal A cross-party report by the French Senate has concluded that no deal with the UK is preferential to the UK securing Read More