BBA Voice

In this section our policy experts give their views on the latest news and developments in the banking industry

6th Jun 2014 Back to top
  • Symbolic? Certainly. Significant: Let’s wait and see

    Richard Woolhouse, Chief Economist, BBA

    This package was widely trailed, however we do not think negative real interest rates are a good tool to increase lending.

    The ECB today delivered on its much trailed set of actions and launched a broad package of actions including a reduction in interest rates and measures designed to stimulate lending in the real economy.  The headlines will focus on the negative deposit rate.  In effect the central bank will charge banks to hold money on deposit, thus attempting to encourage them to lend more to the real economy.  This move will however have a limited impact, the amount that banks hold at the ECB in deposits and reserves has fallen significantly in the past two years.  Many German banks for example are upset by the move which will they say undermine saving behaviour and the European Banking Federation issued a note which said “European banks do not see negative rates as an effective tool to increase lending”.

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    Written by Richard Woolhouse, Chief Economist, BBA

  • FATCA – coming, ready or not

    Sarah Wulff-Cochrane, Director of Financial Policy & Operations

    The US Foreign Account Tax Compliance Act (FATCA) effective date of 1 July 2014 fast approaches and it has been quite a journey getting here.

    I think back to August 2009, when the BBA submitted comments on President Obama’s Fiscal Year 2010 Revenue Proposals. We stated then that:

    A key point …is that it is impractical and ultimately counter-productive to attempt to export a set of very complicated US provisions to foreign financial institutions without further careful and considered examination of the resulting impact on the QI community. ‘

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    Written by Sarah Wulff-Cochrane, Director of Financial Policy & Operations

5th Jun 2014 Back to top
4th Jun 2014 Back to top
  • Will the ECB “do what it takes” to support the economy and raise inflation?

    Richard Woolhouse, Chief Economist, BBA

    The ECB holds a vital meeting this week which given recent comments by officials must deliver a package of further measures designed to provide more stimulus to the European economy.

    What a different predicament the euro zone’s central bank now finds itself in compared to the US and UK, where there is now active discussion about how to withdraw from “unconventional” monetary policy measures.

    How effective any ECB package will be in supporting economic and financial activity remains to be seen.

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    Written by Richard Woolhouse, Chief Economist, BBA

30th May 2014 Back to top
28th May 2014 Back to top
27th May 2014 Back to top
  • Implementing FINREP & COREP

    Robert Driver, Policy Director, Capital Markets

    Firms are well on their way to implementing their new common regulatory reporting (COREP) obligations and close to having to start financial reporting (FINREP).  Our conference offers delegates the opportunity to hear from leading regulatory and industry representatives on what to expect from having to implement the new standards.

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    Written by Robert Driver, Policy Director, Capital Markets

22nd May 2014 Back to top
20th May 2014 Back to top