26th June 2017

BBA Brief – 26 June 2017

BBA publishes May High Street Banking data

The BBA’s latest high street banking data shows that consumer credit growth was 5.1% in May, compared with 6.4% in April (ForexLive, online). Gross mortgage borrowing totalled £13.3 billion last month, with net mortgage borrowing 2.4% higher than a year ago. Commenting on the data, Eric Leenders, BBA Managing Director for Retail Banking said, “this month’s figures show that in the run up to the General Election, credit growth in personal loans, cards and overdrafts has slowed, which was reflected in lower spending; with increased household costs affecting growth in deposits and saving”.

EU Money Laundering Regulations come into force today

City AM (p8) reports the Fourth Anti-Money Laundering Directive comes into force today, introducing new measures to combat terrorist funding and organised crime. The new rules apply to a wide range of firms, including banks, estate agents and accountants. City Minister Stephen Barclay said, “these new rules will tighten our defences, protect the integrity of our financial system and help protect the British public from terror attacks and criminal activities”.

BIS warns on economic risk

The  global economy is  stuck in a “boom-bust” cycle, with unsustainable levels of debt, according to the Bank of International Settlements (The Daily Telegraph, B1). G20 countries have debt with 220% of their combined economic output, almost 40% higher than the level in 2007 (The Times, p40). BIS Chief Economist Claudio Borio said, “high debt might become a significant drag on demand as interest rates normalise”.

Latest from the BBA

Aneta Dyakova, BBA Economic Analyst, blogs on what’s next for the UK’s economy.

Avoka asks how banks can respond to customers’ desire to apply for products and services at point of need, rather than in branches.

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

With 37 speakers in 22 sessions, the full speaker line-up is now confirmed for the biggest ever Retail Banking Conference, taking place this Thursday in central London. With a small number of tickets still available, it’s not too late to book. To register, or for more information, click here.

Tuesday 4 July MIFID II Conference

With only six months to go, there are still implementation obstacles to be overcome with MiFID II, from updating legacy systems, to understanding the finer details of the transaction reporting framework and implementing investor protection 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

$1.49 trillion: value of global M&A activity in 2017 (Financial News).

News in brief

Sky News (online) reports that Andrea Coscelli is expected to be appointed as new CEO of the CMA, with a formal announcement due next month.

The FCA is expected to publish further details on modifications to the Listing Rules tomorrow, allowing large international companies that fail to meet the premium listing standards to float in the UK (City AM, online).

Prime Minister Theresa May will set out further detail on the rights of EU citizens living in the UK after Brexit today (Bloomberg News, online).

The Financial Times (£, p5) comments Zhou Xioachuan is to step down after 15 years leading China’s central bank.

BBC News (online) reports that the Italian government is to rescue two domestic banks at a cost of €5.2bn euros (£4.6bn), with additional guarantees of up to €12 billion.

Politico (£, online) speculates that German Chancellor Angela Merkel  may demand control of the ECB in exchange  for supporting French President Emmanuel Macron’s proposed reforms to the EU.

Diary

BBA publishes May high street banking data.

EU Fourth Money Laundering Directive transposed into UK law.

Institute of Asset Management Annual Conference held in Manchester.

What the commentators say

Writing in Financial News (£, p6) Miriam Gonzalez argues that the UK and EU should not agree a fixed time limit on any transition period after the UK leaves the EU in order to give businesses time to prepare.

Chris Giles comments that a year after the UK voted to leave the EU, economic growth has largely been driven by an increase in consumer demand, warning that the Bank of England has cut its estimate of annual economic growth to 1.75% (Financial Times, £, p11).

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