21st June 2017

BBA Brief – 21 June 2017

Queen’s speech to set out legislative priorities

The Queen will set out the Government’s priorities over the next two years at today’s State Opening of Parliament at 11:30. The main item will be the Great Repeal Bill, which will copy EU legislation into UK law, with other measures to include banning landlords from charging “letting fees” and reducing motor insurance premiums (BBC News, online). Commenting ahead of the speech, Prime Minister Theresa May said: “…this is a Government with purpose. Determined to deliver the best Brexit deal. Intent on building a stronger economy and a fairer society”.

Carney: ‘too soon’ for rate rise

Speaking at Mansion House yesterday, Bank of England Governor Mark Carney warned that falling wage growth and the impact of Brexit mean that it is too early to increase interest rates (BBC News, online). Carney said, “from my perspective, given the mixed signals on consumer spending and business investment, and given the still subdued domestic inflationary pressures, in particular anaemic wage growth, now is not yet the time to begin that adjustment [rate rises]”. The full text of his speech is available here.

Latest from the BBA

Sam Mannion, BBA Policy Adviser, blogs on what Bank of England Governor Mark Carney’s Mansion House speech tell us about the future of regulation.

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 Jawing

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

£120 billion: value added to the UK economy by the financial services sector (Financial Times).

News in brief

The Money Advice Service has published eight tips to help consumers identify whether a friend is in debt, following research that up to 10% of the population have difficulty admitting they are in financial difficulties (BBC News).

Residential property sales have fallen by 7% in England and Wales in the last 12 months, with house prices now almost a third lower than 2016 in some parts of the country (The Guardian, p23).

Politico (£, online) reports that German Chancellor Angela Merkel has provided qualified support for French President Emmanuel Macron’s proposals for reforming the European Union.

US firms have warned that a hard Brexit could undermine the UK’s status as a global centre for booking investment banking business (Financial Times, £, p16).

City firms are seeking to recruit new entrants with more socially diverse backgrounds, with many investing in apprenticeship schemes and mentoring programmes, according to the Social Mobility Commission (The Times, £, p10).

The Daily Telegraph (£, B1) reports that trade talks with the US are set to begin next month, as UK officials begin to explore post-Brexit agreements outside the EU.

Diary

  • State Opening of UK Parliament.
  • ONS publishes May 2017 data on UK government net borrowing and debt.
  • The Bank of England publishes its latest Agents’ Summary of Business Conditions.
  • European Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici speaks on the Commission latest tax proposals.

What the commentators say

Writing in the Financial Times (£, p11), Izabella Kaminska argues that blockchain is over-hyped, noting that it cannot meet the requirements of highly-regulated industries that value privacy, cost-control and compliance.

Jeremy Warner writes that central banks are in danger of sustaining low interest rates for too long, and may ultimately have their independence removed by government if they are unable to better balance the impact of inflation has on living standards with maintaining employment (The Daily Telegraph, £, B2).

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