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
PPI deadline could face judicial review
A claims management company is threatening to launch a judicial review of the Financial Conduct Authority’s proposed deadline for payment protection insurance (PPI) claims (Times, £, p37). We Fight Any Claim has also criticised a proposal that would enable firms that sold PPI to keep half of their undisclosed commission on sales. A legal opinion commissioned by the company claimed that the FCA’s actions were “probably unlawful” and represented a failure of its statutory objective of consumer protection. Andrew Tyrie MP, Chairman of the Treasury Select Committee, said: “The FCA should ensure that the programme of work for PPI complaints does not bring about detriment, or unreasonable delay, for the consumer.” The FCA’s consultation closes next week.
Prime Minister heads to Brussels for key EU summit
David Cameron is heading to Brussels today for a crucial European Union summit that will focus on Britain’s ‘new settlement’ (Guardian, p1). Doubts are being raised over whether the Prime Minister will be able to deliver his proposals. The Telegraph (p1) reports that Mr Cameron is expected to formally announce the referendum tomorrow once he returns to the UK. The Mayor of London, Boris Johnson, has said more needs to be done to obtain his backing for the campaign to keep Britain in the EU.
Slowing wage growth expected to delay interest rate rise
Unemployment dropped by 60,000 between October and December to 1.69m, according to the Office for National Statistics (BBC News). More than 31.4 million people are now in work, the highest figure since records began in 1971. The Guardian (p25) reports that wage growth dropped to 1.9% last year, potentially pushing back the first UK interest rate rise since 2007 even further. The Chancellor, George Osborne, said: “In the face of significant turbulence in the global economy, it is encouraging that more people than ever have the security of a job and a rising pay packet.”
Latest from the BBA
Register now for the BBA forthcoming webinar on ‘Top Risks for 2016’ which will take place on Thursday 25th February. Click here to register your free place.
On 15th March, the BBA is again running its popular one day workshop on ‘Enhancing Your Sanctions Compliance Programme’. Fully updated to incorporate the recent lifting of sanctions on Iran, this workshop will provide you and your team with a solid knowledge and understanding of sanctions. Click here to register.
Latest from our sponsor Jaywing
The IFRS 9 deadline is closer than you think… Read a blog by Jaywing’s Risk Practice Director, Ben O’Brien’s, on how the IFRS 9 deadline is drawing closer, what is holding firms back and how can organisations succeed.
ONS: International comparisons of UK productivity 2014
ONS: UK total public services productivity estimate 2013
Bank of England: Capital Issuance Jan 2016
OECD: OECD economic outlook and GDP growth
ECB: monetary policy discussions
CML: mortgage lending figures
Stat of the day
46 per cent – the proportion of households that expect the Bank of England to raise interest rates before February 2017, down from 71 per cent in November (Source: Markit).
The number of £1m homes is set to triple by 2030, according to research for Santander (Times, £, p28).
The number of people who expect the Bank of England to raise its record-low interest rates over the next 12 months has fallen to its lowest level in more than two years, according to a survey by financial data company Markit (Reuters).
A number of Iranian banks have been reconnected to the global transaction network SWIFT, allowing them to resume cross-border transactions with foreign banks (Reuters).
The Federal Reserve is increasingly cautious about the underlying strength of the US economy and is likely to delay any further interest rate increases, according to minutes released yesterday (FT, £, p10).
The FT (£, p6) interviews Neel Kashkari, President of the Minneapolis Federal Reserve Bank, following his recent criticism of banks for still being too-big-to-fail.
Fraudulent loans are on the rise in China as economic growth slows, placing further pressure on the country’s $29tn banking system. (FT, £, p19)
Potentially radical plans to move Australia’s equities clearing and settlement system on to the blockchain have been announced (FT, £, p30).
What the commentators say
In a letter to the FT (£, p10), Sir John Vickers responds to the Bank of England’s defence of its capital requirement plans for the banking sector.
Writing in the Times (£, p39), Alistair Osborne criticises the FCA for its proposals on PPI.
Ben Chu writes that complex regulatory reform of the banking sector hides that not enough has been done on equity, and says the leverage ratio should be the focus of the debate (Independent, p62).