12th July 2016

BBA Brief – 12 July 2016

Theresa May set to become Prime Minister

Theresa May will take over as Prime Minister from David Cameron on Wednesday evening after she was announced as the new Conservative leader last night (BBC News). Mr Cameron announced yesterday that he would chair his final cabinet meeting today before standing down after Prime Minister’s Questions.  Andrea Leadsom pulled out of the race to succeed Mr Cameron leaving the path clear for her rival Ms May. Separately, Angela Eagle has formally launched a leadership challenge against the Labour leader Jeremy Corbyn (Guardian, p7).

Banks sign up to Women in Finance Charter

The FT (£, p23) reports that more than 70 banks and other City firms have signed up to the Government’s Women in Finance Charter. The charter set a number of voluntary commitments designed to improve gender balance at financial companies following recommendations by Jayne-Anne Gadhia, the Chief Executive of Virgin Money. Harriett Baldwin, Economic Secretary to the Treasury, said: “By signing the charter, firms are committing to driving change at the senior levels of the male-dominated financial services industry. Such widespread commitment will make a genuine difference to gender diversity in financial services” (Guardian, online only). BBA Chief Executive Anthony Browne wrote a blog on the Women in Finance Charter in May.

Treasury Select Committee to question Bank of England

Bank of England Governor Mark Carney will appear before the Treasury Select Committee this morning in the first appearance since the UK voted to leave the European Union (Times, £, p42). He is likely to face questions over the direction of interest rates, the current account deficit and the fall in sterling. Richard Sharp, an external member of the Financial Policy Committee, will also attend the session.

Latest from the BBA

Rebecca Harding, Chief Economist at the BBA, blogs about whether the Bank of England should cut interest rates later this week.

Simon Hills, BBA Executive Director of Prudential Capital and Risk, blogs the important role played by foreign banks following a recent conference.

On the 12 September, BBA will be running a one day training workshop on the ‘Introduction to the Role of the MLRO’ for more details click here.

The BBA’s 13th Annual Liquidity Conference will be taking place on 27 September. Visit our website to view the conference programme, confirmed speakers and to book your place.

Latest from our sponsor Jaywing

Jaywing’s Data Management Practice Director, Inderjit Mund, blogs about the role of data management when it comes to regulatory compliance.

Today’s diary

BBA: Summer Reception

House of Commons Treasury Select Committee: Bank of England Financial Stability Report July 2016 with Mark Carney, Jon Cunliffe and others – 10.00

House of Commons BIS Committee: Access to Finance with Chris Woolard, FCA; Keith Morgan, British Business Bank; Anna Soubry, Minister for Small Business, Industry and Enterprise – 14.30

House of Lords Financial Exclusion Committee: Gwyneth Nurse HMT, Justin Manson UKTI, Neil Couling DWP – 10.30

Bank of England: Quarterly Bulletin Q2

Bank of England: Financial Policy Committee record of latest meeting

Stat of the day

6,696.93 – the level that the FTSE 100 climbed to in early trading this morning after hitting an 11 month high on Monday (Source: BBC News).

In brief

Financial information service Moneyfacts has warned that savers face “tougher times ahead” amid speculation that the Bank of England will cut interest rates on Thursday (BBC News).

The FT (£, p4) reports that Islamic banks and European lenders are topping best-buy tables for savers.

The Times (£, p42) reports that five out of six mortgage borrowers will see no immediate drop in their repayments if the Bank of England cuts interest rates on Thursday.

A leading US regulator has warned over the exposure of banks to commercial real estate lending (FT, £, p20).

SWIFT has hired two external cyber security firms, BAE Systems and Fox-IT, to strengthen their cyber security defences (Reuters).

Jeroen Dijsselbloem, Head of the Eurozone’s committee of 19 finance ministers, has warned that Italy must comply with EU rules restricting the use of public funds to support struggling banks (FT, £, p6).

What the commentators say

Nick Hungerford, the founder of Nutmeg, writes that the City needs to focus more on serving customers to prevent a “popular uprising” (City AM, p19).

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