The BBA is now integrated into UK Finance. Please go to www.ukfinance.org.uk for new content and updates from UK Finance.
Material published by BBA prior to 1st July 2017 is still available on this website.
From 1 July 2017, the finance and banking industry operating in the UK will be represented by a new trade association, UK Finance. It will represent around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation will take on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.x
Bank of England set to cut interest rate
The Sunday Telegraph (B1) reports that the Bank of England’s Monetary Policy Committee will cut interest rates when it meets on Thursday amid concerns over an economic slowdown. It is also expected that the Bank will launch a new round of quantitative easing to boost growth. The FT (£, p3) notes that Governor Mark Carney has previously highlighted the limits of monetary policy, stating that “as we have seen elsewhere, if interest rates are too low (or negative), the hit to bank profitability could perversely reduce credit or even increase its overall price.”
May promises crackdown on big business
Theresa May has pledged to reform executive pay and install employees on company boards as she launches her national campaign to become Prime Minister (Times, £, p1). The Home Secretary states that too few people are sharing in the country’s economic success and more needs to be done to tackle irresponsible behaviour by big business. The Sun (p2) notes that the directors of Britain’s top 100 companies now earn 120 times the average sum earned by their employees, compared to 47 times more in 2000.
Chancellor begins world tour to reassure investors
Chancellor George Osborne has begun a world tour designed to reassure international investors about doing business with the UK following the vote to leave the European Union (Telegraph, B3). Mr Osborne is visiting New York today and will next week travel to Singapore and China. He said: “My message to the world is that Britain may be leaving the EU, but we are not quitting the world. We will continue to be a beacon for free trade, democracy and security, more open to that world than ever.”
The BBA’s 14th annual Financial Crime and Sanctions Conference will be taking place on the 20 and 21 September. Visit our website to view the conference programme, confirmed speakers and to book your place.
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Jaywing’s Data Management Practice Director, Inderjit Mund, blogs about the role of data management when it comes to regulatory compliance.
Visa Europe Consumer Spending Index
Deloitte CFO Survey: on CFOs views on risk, uncertainty, investment plans and access to credit
Eurogroup meeting of Eurozone finance ministers: in Brussels
Stat of the day
98.9 – business optimism in June, down from 99.4 in May (Source: BDO).
Demand for start-up loans is expected to pick up if the economy slows down in the wake of the EU referendum vote (FT, £, p4).
Uncertainty following the EU referendum vote has pushed UK business output and optimism to three-year lows, according to a new report from services group BDO (BBC News).
Bloomberg looks at the exposure of the UK banking sector to commercial real estate.
Employers have responded to the new National Living Wage by raising prices or reducing profits rather than cutting jobs, according to a survey from the Resolution Foundation (BBC News).
The Sunday Times (£, B1) reports that Italy and the European Commission are deadlocked over plans to support the country’s banking sector.
What the commentators say
Writing in the Times (£, p7), Home Secretary Theresa May states that “we need to get tough on irresponsible behaviour in big business” and calls for reform of executive pay.