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
Theresa May set to become Prime Minister
David Cameron will stand down as Prime Minister later today, with Theresa May set to replace him (Telegraph, p1). Mr Cameron said: “As I leave today, I hope people will see a stronger country, a thriving economy, and more chances to get on in life.” He will tender his resignation to the Queen after Prime Minister’s Questions. Meanwhile, Labour’s National Executive Committee has ruled that Jeremy Corbyn should automatically be included in the leadership contest (BBC News). Pontypridd MP Owen Smith has announced he will stand in the contest.
Carney lays ground for new round of monetary stimulus
Mark Carney, the Bank of England Governor, has said steps to strengthen bank balance sheets after the financial crisis meant there “won’t be a credit crunch”, but stressed that demand for loans depended on the economy (Telegraph, B5). Mr Carney said: “We have been talking to the banks […] and their orientation is outward facing, their balance sheets are in strong positions, they are in the business of taking on risk […] If they have to, they may adjust their risk profit, but they have a lot of capital and they need to put it to work” (Telegraph, B5). He also told the Treasury Select Committee that it is “important” that he and the Chancellor can have private conversations after being challenged about his discussions on Brexit (BBC News).
Foreign Secretary speaks at BBA Summer Reception
Bloomberg reports that Foreign Secretary Philip Hammond said that he will work to support the financial services industry during discussions following the European Union referendum vote. Speaking at the BBA’s Summer Reception, Mr Hammond acknowledged that “financial services industry is probably the most directly affected” by a Brexit and said “we will do our bit to get you the certainty you crave.” He also added: “I know and understand the importance of passporting.” Nick Robinson also featured Mr Hammond’s speech in a package on the Today programme (skip to 1:37:00).
Latest from the BBA
Nominations are open for ifs University College and BBA 2016 Financial Innovation Awards, which seek to recognise and reward innovation in the finance sector. Click here for more details.
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.
House of Commons Treasury Select Committee: The UK’s future economic relationship with the EU – 1400hrs
Bank of England: Credit Conditions Review Q2
Bank of England: Bank Liabilities Survey Q2 published
CML: Monthly Lending Trends May 2016
Annual Financial Services Cyber Security Summit: in London
Stat of the day
2,256 – the number of days that David Cameron has served as Prime Minister (Source: Telegraph).
Reuters reports that Lord Hill has said that all bank loans to small businesses would in future be eligible for a reduction in capital charges as he prepares to step down as European Union Financial Services Commissioner.
The FT (£, p15) reports that pay for chief executives of big banks climbed by 7.6 per cent in 2015 — more than 10 times faster than a year earlier.
Money Mail (p42) reports that savers are turning away from cash Isas following the introduction of the personal savings allowance. A BBA spokesman said: “The new personal savings allowance has effectively increased the number of tax-free options for millions of savers. They may now be looking to save in more traditional accounts, rather than in an Isa.”
The FT (£, p6) reports that German Chancellor Angela Merkel has expressed confidence that talks between Rome and Brussels about supporting Italian banks could be “resolved well”.
What the commentators say
Writing in the Telegraph (B2), Ben Marlow highlights how the declining value of mergers and acquisitions presents a challenge for investment bankers.
Patrick Hosking looks at whether the Bank of England’s Monetary Policy Committee should cut interest rates when it meets tomorrow (Times, £, p39).