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
Dombrovskis focuses on London’s euro trading position
Valdis Dombrovskis, European Union Commissioner for financial services, has stated that it is “too early to draw conclusions” about euro trading activity moving from London (FT, £, p6). Mr Dombrovskis also said that he would pursue “continuity” with the agenda of his predecessor Lord Hill. He also highlighted the importance of the capital markets union initiative: “With the possibility of the EU’s biggest capital market actually leaving the EU, this task becomes even more urgent and even more relevant.”
Bankers fear new industry tax raid
The Sunday Telegraph (B3) reports that leading bankers are concerned about the Government potentially imposing a new tax on the sector to shore up the public finances following the EU referendum vote. An unnamed senior executive at a major bank said: “There will be a tax cost to the Treasury if the economy slowdown and revenues fall. We got a reprieve on the bank levy last year, so perhaps that benefit could be reversed.” The Office for Budget Responsibility predicted the banks would pay £2.9 billion this financial year on the levy, with the rate falling to £2.2 billion by 2020-21.
UK to launch free trade talks
The Daily Mail (p4) reports that the Government is aiming to secure ground-breaking free trade deals with zones ten times the size of the EU before Britain leaves in 2019. Liam Fox, the new International Trade Secretary, is due to fly to the US in the coming days for tentative talks while he also had discussions with the Canadian Trade Minister last Friday. Mr Fox said: “We’ve already had a number of countries saying: we’d love to do a trade deal with the world’s fifth-biggest economy without having to deal with the other 27 members of the EU” (Sunday Times, £, p1).
Latest from the BBA
Matt Field, the BBA’s Digital Policy Adviser, blogs about how FinTech is transforming consumer attitudes and expectations when it comes to banking.
Dr Rebecca Harding, Chief Economist at the BBA, blogs about the economic outlook for the week ahead in the UK and Europe.
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.
Centre for Policy Studies: Chancellor delivers Margaret Thatcher lecture
Resolution Foundation: Implications of Brexit for monetary policy with Martin Weale
Deloitte: CFO Survey
Rightmove: Monthly House Price Index, July
Stat of the day
0.9 per cent – the fall in average asking prices for houses coming to the market since last month (Source: Rightmove).
Bank of England policymaker Martin Weale has stated that the Monetary Policy Committee should not be afraid to defy market expectations of an interest rate cut next month (Reuters).
A report from Boston Consulting Group states that investment banking revenues are likely to fall about 11 percent this year due in part to uncertainty following the EU referendum vote (Reuters).
The Guardian (p23) interviews RBS Chief Executive Ross McEwan on a range of issues, including the potential impact of Brexit.
The Daily Mail (p19) looks at how using direct debit cards overseas can lead to consumers facing large charges for relatively small purchases.
What the commentators say
Writing in the Observer (p43), Sean Farrell looked at the key issues facing Andrew Bailey at the Financial Conduct Authority with Philip Hammond taking over as Chancellor.
Jeffrey Mountevans, Lord Mayor of London, writes about the importance of the UK selling itself internationally in the wake of the EU referendum vote (City AM, p19).
Writing in the FT (£, p16), Jonathan Ford looks at how online marketplace lenders could evolve into institutions resembling banks by tapping regular deposit funding.