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
Data from the second Wealth of Opportunities report published today highlights the sector’s substantial social and economic contributions to UK plc, with around £825 billion of client assets currently managed or administered – comparable in value to around 40% of GDP.Read more
From today, 99 per cent of UK personal bank customers and over 75 per cent of business customers can do their day-to-day banking at the Post Office, as a new industry-wide agreement with UK banks comes into effect. This will see the biggest expansion in face-to-face banking access in a generation.Read more
Dr Rebecca Harding, BBA Chief Economist, said:
“Consumer credit growth continues to be strong, despite falling back a little in November, reflecting strong retail sales in recent months.
“The reduction in interest rates in August may have boosted remortgaging approvals, with consumers looking to take advantage of the current economic conditions and lock-in lower interest rates.
“A corollary of a low interest rate environment is a growth in deposits and we’ve seen personal deposits, in particular, grow more strongly in recent months as consumers hoard cash in the absence of higher-yielding, liquid investment opportunities. This growth in personal deposits may also suggest that consumers are looking to grow their cash reserves against potential economic uncertainties, such as an expectation of lower wage growth.”Read more
Eight of the leading investment and pension trade associations have joined forces to investigate ways to improve the process of transferring pension and investment assets. Following a review process, a consultation paper has been published today and is seeking input from all stakeholders.Read more
Commenting on the results of the Bank of England 2016 stress test, Simon Hills, BBA Executive Director of Prudential Capital and Risk, said:
“The results of the Bank of England stress test – the most rigorous to date – released this morning confirm that, following steps agreed by some of the banks, the seven financial institutions tested would have sufficient capital to withstand a severe and prolonged global downturn. They are also strong enough to continue to support businesses and consumers throughout a potential future stress.Read more
Dr Rebecca Harding, BBA Chief Economist, said:
“Consumer credit is now growing at its fastest rate since November 2006, reflecting strong retail sales growth. Consumer confidence remains robust as borrowers take advantage of record low interest rates.
“Mortgage approvals ticked up a little October. There has only been a relatively modest increase in activity since the Bank of England cut rates in August.
“Finally, there was a slight increase in business borrowing in October but this was driven by a one-off factor and will probably unwind next month. However, businesses are increasingly going back to capital markets as a means to raise funding. They also continue to hold cash deposits, suggesting that they are building up cash reserves for ready access to resources should the need arise.”Read more
Commenting on today’s Autumn Statement, Anthony Browne, CEO of the BBA said:
“We welcome the Chancellor’s efforts to give business greater clarity and certainty in planning and investment for the long term. This is particularly welcome in relation to tax matters.
“The move to a single major fiscal event a year in the autumn is also welcome, so that any changes to the tax system can be made well in advance of them taking effect.”Read more
In response to the review Anthony Browne, BBA CEO said:
“As Professor Griggs recognises, we are in the midst of a consumer-led digital revolution in the way we do our day-to-day banking. However, banks are very aware no customer or business should be left behind and branches play an important role in the life of local communities. That is why decisions to close branches are never taken lightly.
“It’s encouraging the review found banks have tried hard to use the protocol correctly and approach any closure with the right culture and the correct amount of ‘robustness and rigour’. There is no doubt they will continue to do so.
“However, there is always room for improvement. In accepting Prof Griggs’ recommendations, the sector has moved swiftly to agree to update the guidelines and in doing so offer even greater support and advice to customers.”Read more