30th June 2017

BBA Brief – 30 June 2017

City Minister and FCA CEO speak at BBA Retail Banking Conference

City Minister Stephen Barclay said that the government is committed to, “support the industry as it adapts to open banking, technology, new entrants – in ways that deliver better services to customers” and wanted to ensure that the sector’s needs are understood across Whitehall. FCA CEO Andrew Bailey noted that the regulator will focus on current account provision as part of its strategic review of retail banks business models. The conference was covered by a range of publications, including: the Financial Times, (£, p2), Politico (£ online), Daily Mail (p77), The Daily Telegraph (£, B3), The Independent (p50), Evening Standard (p45) and City AM (p3).

Bank of England publishes consumer credit data

The Bank of England’s latest monthly data shows consumer borrowing rose by 10.3% in the year to May (The Guardian, p24). The Daily Telegraph (£, B1) reports that 121,464 mortgages were approved last month, with total mortgage debt rising by £3.5 billion. Howard Archer, Chief Economic Advisor to EY’s Item Club said, “the housing market is being pressurised by weakened consumer purchasing power and increased consumer wariness over engaging in major transactions”. The BBA’s most recent High Street Lending data is available here.

NAO warns on cyber risk

The National Audit Office has called on the government to do more to address the risk of cybercrime, estimating that nearly two million cyber-related fraud cases took place last year (BBC News, online). The Times (£, p7) reports that the economic costs of cyber fraud is over £144 billion, £20 billion more than the NHS budget. Head of the National Audit Office, Sir Amyas Morse said, “for too long, as a low-value but high-volume crime, online fraud has been overlooked by government, law enforcement and industry. It is now the most commonly experienced crime in England and Wales and demands an urgent response”.

Today marks the final BBA Brief, and the last day of the BBA before it joins with five other trade associations to become UK Finance next week, after 98 years as the voice of banking. From 1 July 2017, the finance and banking industry operating in the UK will be represented by a new trade association, UK Finance. It will represent around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation will take on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.

Your daily financial and banking news brief will be back in your inbox in September. You’ll still receive the brief if you’re currently on the distribution list, but please feel free to drop us a line if you have any questions.

Latest from the BBA

BBA CEO Anthony Browne’s final blog on the BBA’s many achievements after 98 years of the voice of banking, and the opportunities ahead for UK Finance.

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.

Tuesday 4 July  Risk Governance – the perspective of smaller banks and subsidiaries

This half-day workshop will discuss governance responsibilities and Senior Managers Regime requirements from the perspective of smaller firms, UK firms that are parts of international groups and UK “ring-fenced” entities. To register, click here.

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IRB or not to be

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Stat of the day

159: number of logins to banking apps every second (BBA, Way We Bank Now 2017).

News in brief

Business groups, banks and the Bank of England have formed a group to help promote career progression opportunities for people of Black, Asian and ethnic minority backgrounds (City AM, p14).

Supermarkets are to appeal a tax ruling that ATMs built into shops should attract a separate business rate, which could lead to a reduction in the number of ATMs (Daily Mail, online).

ESMA is considering additional limits of spread betting firms, such as imposing limits on client losses, which go beyond the FCA’s current proposals (Evening Standard, p51).

Reuters (online) reports that money market participants have priced in 90% chance the ECB will lift interest rates by July 2018.

Rising inflation and low wage growth have prompted a fall in consumer confidence according to a monthly survey by marketing firm GfK (Reuters, online).

Diary

Final day of the BBA, after 98 years as the voice of banking.

Office for National Statistics publishes Q1 2017 GDP data.

What the commentators say

A Lex writer comments that banks have added more than $750 billion of equity since 2009, and welcomes signals that the US Fed may take a more relaxed approach to healthier banks (Financial Times, £ p12).

City AM’s leader writer (p2) notes that the UK’s negotiating position is strengthened by its current status as a major contributor to the EU’s budget.

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