7th July 2016

BBA Brief – 7 July 2016

EU urges Basel Committee to avoid disproportionate costs for banks

Reuters reports that European Union Finance Ministers will issue a statement at their meeting next week urging the Basel Committee to avoid imposing a disproportionate increase of costs on European banks. Ministers will say “the reform package would not be expected to result in a significant increase in the overall capital requirements for the European banking sector.” In a joint document, the French and German banking federations said the new rules as they stand “may mean that the capital requirements for banks will rise in some cases by up to a further 50 per cent.”

NCA warns over cyber threat

Criminals are outpacing UK businesses and law enforcement in “cyber arms race”, according to the National Crime Agency. It said there were 2.46 million ‘cyber incidents’ last year, including 700,000 frauds. The NCA highlighted the threat posed “by a few hundred international cyber criminals”, who exploit businesses through malware-facilitated fraud. The Government is to spend £1.9 billion over the next five years on cyber security.

Latest from the BBA

Read BBA Chief Executive Anthony Browne’s newsletter on the EU referendum vote, the BBA’s Retail Banking Conference and Andrew Bailey taking the reins at the FCA.

On the 12th September, BBA will be running a one day training workshop on the ‘Introduction to the Role of the MLRO’ for more details 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

Conservative Party: leadership election MP ballot – second round

House of Commons Public Accounts Committee: Government. Balance sheet – witnesses: Tom Scholar, Ian Bulmer and Julian Kelly 10.30am

CBI: Medium-sized businesses conference in London (Speakers include Antonio Horta-Osorio)

Bank of England: Quoted Rates June 2016

Halifax: House Price index June 2016

ECB: monetary policy discussions June 2016

Stat of the day

$1.2796 – the weakest level that the pound hit against the dollar yesterday, a new 31 year low (Source: FT).

In brief

German Finance Minister Wolfgang Schaeuble has said he opposes a “race to the bottom” of competitive tax cuts following George Osborne’s recent pledge to slash UK corporation tax (BBC News).

The FT (£, p1) reports that the French Government is attempting to attract bankers from London to Paris by offering a more accommodating fiscal regime.

The Financial Conduct Authority has re-appointed Sue Lewis as Chairwoman of the Financial Services Consumer Panel (Reuters).

The FT (£, p19) reports that Berlin is bidding to take London’s crown as Europe’s leading fintech hub following the EU referendum vote.

Chinese officials have suggested they are open to opening trade talks with the UK following the EU referendum vote (Telegraph, B1).

European financial services commissioner Valdis Dombrovskis has insisted that the problems in the Italian banking sector preceded the UK’s vote to leave the European Union (Reuters).

What the commentators say

Reza Moghadam, Vice-Chairman for sovereigns and official institutions at Morgan Stanley, argues that “if Europe is to survive Brexit, it must complete the banking union” (FT, £, p13).

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