30th June 2016

BBA Brief – 30 June 2016

Reaction to EU referendum vote

The FT (£, p2) reports that the Bank of England called in senior executives from Britain’s biggest lenders to discuss the impact of the vote to leave the European Union. The newspaper states that officials at the central bank reassured the industry about the amount of liquidity in the system, as well as encouraging them to continue lending to consumers and businesses.  Separately, the Guardian (p9) highlights a speech that Mark Carney, the Bank of England Governor, will deliver later today in an effort to calm fears over the UK’s financial system.

Speaking at the BBA’s Retail Banking Conference yesterday, BBA Chair Noreen Doyle said: “While we may have resisted some of the reforms over the past eight years, the increase in the capital in the system and the strict attention by the Bank of England to the liquidity in the system has actually reaped substantial benefits in an orderly market over the past few days, and may that continue” (Telegraph, p8). The BBA’s Chief Executive Anthony Browne added: “After this referendum result, we are where we are. Don’t let’s talk ourselves down into a recession, let’s talk ourselves up and work together to make sure Britain has a great future.”

Senior executives from the UK’s high street banks also said that they have seen an increase in customer queries about mortgages and currency following the EU referendum (FT, £, online only).

European Council President Donald Tusk has insisted that “there will be no single market a la carte” for the UK, (City AM, p4). European Commission President Jean-Claude Juncker echoed those comments, stressing that all of the EU’s four freedoms – goods, services, people and capital – must be accepted. However, the French Finance Minister Michel Sapin has said everything will be on the table in the negotiations. Meanwhile, the FT (£, p2) reports that the UK will be sidelined from the Capital Markets Union initiative that was originally put forward by Britain’s Commissioner Lord Hill.

Michael Gove and Theresa May have this morning announced their intention to run to be the next Conservative Party leader and Prime Minister (BBC News).

Latest from the BBA

Bring a colleague along for free to the BBA’s July’s training workshops on Financial Promotions, SMF Roles – Your Senior Management Responsibilities, Cyber Security: What Every Bank Needs To Know . For more details contact Philip Allen.

Representatives of Lloyds Bank, Standard Chartered, TSB and the AIB Group will speak at the BBA’s Interest Rate Risk in the Banking Book Forum on 5 July. For full details and to register click here.

On 5 July, the BBA will run a series of fast paced one hour CPD sessions on Anti Money Laundering for members based in the West Midlands and Birmingham. We will cover practical sessions on ‘Terrorist Financing, ‘Whistleblowing’ and ‘Corruption update – with a spotlight on FIFA’. For more details of the morning and afternoon sessions please click here.

Latest from our sponsor Jaywing

Jaywing’s Data Management Practice Director, Inderjit Mund, blogs about the role of data management when it comes to regulatory compliance.

Today’s diary

House of Commons: Backbench Business Debate on bank branch closures

ONS:  UK final growth figures for Q1 and balance of payments Q1

ONS:  Consumer Trends – quarterly statistics

Nationwide House Price Index

DCLG: Help to Buy statistics Q1

Stat of the day

£204,968 – the average cost of a home in the UK, after a 0.2 per cent increase in June (Source: Nationwide).

In brief

World-Check Risk Screening, a financial crime database used by banks, has been leaked online (BBC News).

The FT (£, online only) looks at the potential impact of Brexit on bank lending to SMEs and how the industry has been reassuring clients.

The Times (£, p44) reports that the Institute of Directors has criticised the Government for failing to live up to the Conservative Party manifesto pledge of cutting red tape by £10 billion.

Consumers borrowed £1.5 billion in May, up from £1.3 billion the month before, according to data published by the Bank of England (Times, £, p46, paper only).

The FT (£, p18) reports that a new US bank safety regime could increase in the cost of doing business across the Atlantic.

What the commentators say

Oliver Kamm defends the Bank of England’s response to the EU referendum and welcomes the fact that capital requirements in the banking sector have been increased (Times, £, p47).

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