16th March 2017

BBA Brief – 16 March 2017

Germany to make concessions on Basel III

The Financial Times (£, online) writes that German officials have signalled that “real progress” has been made in discussions around the introduction of an output floor into models for calculating capital requirements. Previously, it had been proposed that the floor should be set at 75%, with a phase-in period starting at 55%, however the paper reports that, “people familiar with Basel discussions said that the 55 per cent to 75 per cent range had now significantly narrowed”.

£2 million per day lost to fraud

The Daily Mirror (p10) reports on data from FFA UK that criminals steal personal details and credit or debit card information from approximately 5000 customers, with up to £2 million lost to fraud, every day.  Commenting on the findings,  FFA UK Director Katy Worobec highlighted a, “significant problem with fraudsters using increasingly sophisticated methods to circumvent bank technology and target victims”. The full report is available here.

Government to set up new anti-money laundering body

The Daily Telegraph (£, online) notes that the Government will set up a new body to tackle money laundering and address the gaps in oversight of existing money laundering regulations.  The Office for Professional Body Anti-Money Laundering Supervision (OPBAS) will sit within the Financial Conduct Authority (FCA) and is due to launch next year (City AM, p7).

Latest from the BBA

Theano Advisors’ Benoît Barrière and Laurent Coulon blog on the non-finance firms with the capital and systems to move into markets traditionally dominated by banks.

Mark Daws, Managing Director, Navigant blogs on six key questions that firms have to address when implementing the FCA’s new financial crime reporting requirements.

Simon Hills, BBA Executive Director of Prudential Regulation and Risk, blogs on the PRA’s proposed changes to the Pillar 2 framework.

Ariane Poulain, BBA Government Affairs Manager, writes on banks’ contribution to local communities and employment.

6 April 2017 BBA Workshop: Risk Governance – the perspective of smaller banks and subsidiaries
Bank boards and their risk committees (BRCs) have seen their regulatory responsibilities increase significantly since the crisis. This interactive session will introduce best practice and practical ideas for addressing the challenges at hand. To register click here.

29 June 2017 – BBA Annual Retail Banking Conference
Join us for this year’s flagship Retail Banking Conference and hear from industry leaders and subject matter experts on the biggest topics affecting the retail banking sector. To see the full agenda and speaker line-up, and to book your place, visit our website.

Claude-Vincent Gillard, Chief Production Officer at Bureau van Dijk, blogs on how analysts can enhance stress testing analysis with wider data sets to evaluate banks’ performance.

Today’s diary

UK interest rate decision announced

FFA UK publishes fraud data

Latest from our sponsor Jaywing

Ben O’Brien, Jaywing Managing Director, blogs on the benefits of developing integrated modelling programmes for IFRS 9 and stress testing.

Stat of the day

£768m – total amount lost to fraud in 2016 (FFA UK)

News in brief

BBC News (online) reports that the Queen will sign the The European Union (Notification of Withdrawal) Bill into law today, allowing the Prime Minister to trigger Article 50.

The Financial Times (£, online) writes that the European Parliament will demand that the UK remain under the jurisdiction of EU courts, as a condition for an orderly transitional arrangement.

Brexit Secretary David Davis told a committee of MPs that the Government has not assessed the impact of a not securing a trade deal with the EU (The Independent, p6).

Internal EU documents seen by Reuters (online) warn that non-performing loans will pose a greater threat to EU banks if the ECB slows or halts its economic stimulus program.

The Daily Telegraph (£, B4) writes that there were 17% fewer vacancies in financial services last month compared to February 2016, despite overall unemployment across the economy falling to its lowest level since 1975.

What the commentators say

Writing in The Sun (p9) Chancellor Philip Hammond confirms that the Government will not increase National Insurance rates during this Parliament. He also notes that the Government will continue to review access to benefits such as parental leave for the self-employed.

Larry Elliott (The Guardian, p26) writes that one of the ironies of QE is that it has prompted a flight to safe havens, rather than encourage investors to buy risky assets. Commenting on the Fed’s decision to raise interest rates last night, he noted that the differences in rates between the US, Europe and Japan will lead to further support for the dollar.

Please register or login to add this to your interests.