20th June 2017

BBA Brief – 20 June 2017

Chancellor and Bank of England set out Brexit priorities

Speaking at Mansion House this morning, Chancellor Philip Hammond identified four priorities for Brexit negotiations: a comprehensive agreement on trade and services, a mutually beneficial transitional arrangement, frictionless customs arrangements and an implementation period (The Guardian, online). Bank of England Governor Mark Carney warned that, “splitting Europe’s market for clearing euro-denominated derivatives would bump up costs for users and do little to improve financial stability” (Reuters, online).

Formal negotiations over the UK’s exit from the EU began yesterday. BBC News reports that early discussions will focus on citizens’ rights, the UK’s financial settlement and the EU/Northern Ireland land border, while The Daily Telegraph (£, p1) notes that Brexit secretary David Davis reaffirmed the UK’s commitment to leaving the single market and customs union.

ECB to mandate cyber-attack reporting

Banks supervised by the ECB will be required to disclose all major cybersecurity breaches to the central bank from this summer. City AM (p10) reports that the ECB will also review cyber security at banks, noting that this issue remains high on regulators’ agendas following a series of high profile attacks. ECB Executive Board member, Sabine Lautenschlaeger, said the measures, “will help us to assess more objectively how many incidents there are, how cyber threats evolve [and] help us to identify vulnerabilities and common pitfalls”.

Latest from the BBA

Andrew White, VP EMEA, Vidyo, Inc. blogs on how video-enabled platforms integrate the trend for digital engagement with the benefits of face to face interaction.

Holly Whitehead, Research and Development Manager at International Compliance Training, writes that investing in training for compliance staff after breaches are discovered is too little, too late.

Tuesday 27 June  Hanging on and Letting go! The art of Delegation under SMCR

Focus is turning to how firms and individuals manage delegation under the SMR regime. This interactive two hour workshop will cover a number of case study scenarios, with practical examples of record keeping, and workflow processes.To register, click here.

Thursday 29 June BBA Annual Retail Banking Conference 2017

The full speaker line-up is now confirmed for the Retail Banking Conference including new City Minister Stephen Barclay MP, Andrew Bailey, Chief Executive of the FCA and CEOs from some of the UK’s largest Retail banks as well as challengers and specialist banks who are changing the future of the banking landscape. To register, click here.

Tuesday 4 July BBA MIFID II Conference

Hear from regulators and industry practitioners on the impact MiFID II will have on your bank, and what you need to do to comply with the rules. To register, click here.

Latest from our sponsor Jaywing

IRB or not to be

With multiple pressures already bearing down on capital, how does a smaller bank cope with the dichotomy of having to lend to support the SME and mortgage market at a time when CRD IV combined capital buffers are increasing in time for 2019? Is now the time to be considering IRB as a means of optimising capital? Read our latest blog to find out more.

Stat of the day

34%: percentage increase in spending on contactless credit and debit cards this year (Barclays, UK Cards Association).

News in brief

The Times (£, p44) writes that both contactless spending and the number of cash withdrawals is increasing, with contactless transactions up by over a third in 2017.

The CBI has warned that the UK’s economy will grow by 1.6% this year, down from a 1.8% increase in GDP last year (The Guardian, p25).

Professor Silvana Tenreyro has been appointed to the Bank of England’s Monetary Policy Committee, replacing Kirsten Forbes (Financial Times, £, p2).

The ECB has published details of its Emergency Liquidity Assistance scheme, including the charges applied to each bank in a bid to increase transparency around the scheme (Reuters, online).

The FCA has set a deadline of 3 July 2017 for firms to submit applications for licences under MIFID II City AM (p6).

Diary

  • Chancellor and Governor of the Bank of England speak at Mansion House.
  • Vice-President of the European Commission, Valdis Dombrovskis, speaks at the European Parliament’s ECON Committee.
  • European Central Bank to publish a Eurozone economic indicators.

What the commentators say

Mohamed El-Erian warns that markets should pay closer attention to the US Fed’s forward guidance, arguing that the Fed’s decision to increase rates signals that it is ready to normalise economic policy and prepared to give less weight to short-term data (Financial Times, £, p26).

Alex Brummer argues that Government and regulators should exercise powers that allow significant IPOs to take place in the UK without offering the 25% minimum “free float” in their shares set out in the Listing Rules, commenting that it is essential to demonstrate the UK is the strongest global centre for investment banking activity (Daily Mail, p71).

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