22nd June 2017

BBA Brief – 22 June 2017

BoE’s Haldane favours higher rates

The Bank of England’s Chief Economist Andy Haldane has indicated that he might support an increase in interest rates later this year, warning that “leaving a rate hike until too late risks steeper rate rises in the future” (BBC News, online). The Guardian (p23) reports that his comment prompted sterling to rise, reaching $1.27 before falling back before markets closed.

FESE publishes report on capital markets

The Federation of European Securities Exchanges (FESE) has published a report with Oliver Wyman, calling for European capital markets to be accessible to all market participants regardless of location (Politico, £, online). Commenting on the report, Deirdre Somers, FESE President, said, “exchanges are a key solution for European companies seeking to improve financing and risk management, providing them with the tools to manage their risks and access to capital in order to grow, scale and deliver the jobs, brands and economic multiplier Europe needs”. The report is available here.

Latest from the BBA

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

Mark Russell, BBA Senior Policy Director Financial Stability blogs on the longer-term impact of the first significant test of the EU’s bail-in regime.

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

8: the number of Bills related to Brexit in yesterday’s Queen’s speech (BBC News).

News in brief

Bloomberg (online) reports that banks are preparing to cut back their spending on research ahead of new rules that mandate greater transparency over the cost of research introduced by MiFID II.

Prime Minister Theresa May will set out the UK’s approach to the rights of EU citizens living in Britain after Brexit when she meets EU leaders later today (Sky News, online).

Politico (£, online) reports that as Estonia prepares to take over the EU presidency, it will focus on measures to reform tax, review EMIR and risk reduction over the next 6 months, but will not push plans to create a European deposit insurance scheme.

The Wall Street Journal (£, Business, p1) suggests that post-crisis regulation has increased costs and reduced services for smaller bond funds.

Diary

  • UK Prime Minister Theresa May to attend summit of EU leaders.
  • Council of Mortgage Lenders publishes May 2017 mortgage lending figures.
  • CBI publishes its latest Monthly Industrial Trends Survey.
  • US Federal Reserve Board releases latest supervisory stress test results.

What the commentators say

Sky’s (online) Ian King comments that business leaders will welcome the omission of measures to reform executive pay and the balance of company boards from the Queen’s speech yesterday. He notes that, alongside Brexit, the Government’s biggest economic challenge will be to manage the UK’s budget deficit.

Writing in the Financial Times (£, p24), Diana Choyleva warns that the challenging conditions many smaller participants in Chinese money market firms may trigger a financial crisis.

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