The BBA is now integrated into UK Finance. Please go to www.ukfinance.org.uk for new content and updates from UK Finance.
Material published by BBA prior to 1st July 2017 is still available on this website.
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.x
In this section our policy experts give their views on the latest news and developments in the banking industry
The banking industry fully supported the Parliamentary Commission on Banking Standards’ (PCBS) suggestion to introduce new rules to allow bonuses to be clawed back from bankers who have been prosecuted and found guilty of causing harm to customers or their bank.Read more
The Bank of England’s Inflation Report this morning continues to paint a relatively upbeat picture of the economy and despite further upward revisions to growth the Bank still remains relaxed in terms of signalling the likely profile for interest rates.Read more
Written by Richard Woolhouse, Chief Economist, BBA
The EBA and the BOE announced their stress tests today. Both look at an adverse economic shock with the EBA looking for a deviation from current GDP projections of around 7% by 2016, with a 20% drop in equity markets and 14% fall in house prices. Bond yields are also expected to rise by 150bp on average with the peripheral countries harder hit. The EBA sets the capital targets at 8% of Common Equity Tier 1 for its baseline scenario and 5.5% for the stress test.Read more
Written by James Barty
Sir, Martin Wolf (“‘Too big to fail’ is too big to ignore”, April 16) and Robert Jenkins (“Regulators’ attempts to hold back the financial tide are futile”, April 17) respectively argue that “bank leverage remains too high” and that banks have “too little” capital. In so doing, they downplay the extent of the huge regulatory changes that are taking place.Read more
Written by Anthony Browne
Last week, the US Federal Reserve announced that the largest US banks will be expected to meet a leverage ratio of 5 per cent. Their decision demonstrates once again how something intended as a simple and transparent backstop can be anything but.Read more