27th June 2017

BBA Brief – 27 June 2017

IRSG warns on Great Repeal Bill

The International Regulatory Strategy Group (IRSG) has warned that the government should adopt a principles-based approach to transposing EU law into UK legislation, and cautioned against using the Bill to, “make policy changes which could risk turning it into a legislative Pandora’s Box” Politico (£, online). IRSG Chair Mark Hoban said, “Given the complexity and scale of the task, the Repeal Bill should only be used to provide stability and continuity for business and its customers. Policy changes should be in separate legislation and be subject to proper consultation and planning.”

Consumer confidence falls  Centre for Economics and Business Research and YouGov

Data from the Centre for Economics and Business Research and YouGov suggests that consumer confidence has fallen to its lowest level for 12 months, due to political uncertainty and a slow down in the housing market. Stephen Harmston, Head of YouGov, noted that, “the property market [has been] one of the key things that has propped up consumer confidence over the past few years”. The BBA’s latest High Street Banking data shows that lenders approved 40,347 residential mortgages in May (Sky News, online).

ATMs Turn 50 today

The first ATM was opened 50 years ago today at a Barclays Branch in North London. Sky News (online) reports that in 2015 there were 70,270 cash machines dispensing an average of £7,576 per day. The Financial Times (£, p17) reports that cardless ATMs are the latest innovation in dispensing cash, reducing the time that customers spend queuing at machines.

Latest from the BBA

Aneta Dyakova, BBA Economic Analyst, sets out a snapshot of the UK’s key economic indicators.

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

20 million: the number of SMEs in Europe (IBM).

News in brief

Politico (£, online) reports that officials met to discuss changes to Basel III over the weekend but were unable to agree a deal.

Reuters (online) reports speculation that the Bank of England is unlikely to increase interest rates in the short term, despite recent disagreements between MPC members, noting that no Governor has been outvoted on a change in interest rates since 2007.

The European Commission has called on national regulators to conduct thematic reviews on a range of firms including private banks amid fears that criminals are exploiting new products to launder money across EU jurisdictions (Politico, £, online).

The Wall Street Journal (£, B7) notes that the market for European CoCos remains relatively resilient, despite recent credit events at Spanish and German institutions.

Seven banks are working with IBM to build a blockchain based service to simplify and speed up trade finance deals (Reuters, online)

Diary

Bank of England publishes latest Financial Stability Report.

50 years since the first ATM was opened in the UK.

Greater Manchester Mayor Andy Burnham and Shadow Housing Secretary John Healey speak at the Chartered Institute of Housing’s annual conference in Manchester.

What the commentators say

Writing in the Financial Times (£, p14) Patrick Jenkins warns that global banks may be more at risk from the rapid expansion of China’s big conglomerate businesses than local banks, as regulators raise concern over credit risk

Alex Brummer cautions that large increases in government spending risk creating another economic crisis, noting that the UK’s overall debt burden is 89% of GDP, despite the annual deficit falling by two-thirds (Daily Mail, p65).

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