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
A new Government scheme that involves banks passing on the details of small businesses they have rejected for finance to three designated finance platforms – Funding Xchange, Business Finance Compared and Funding Options – has been launched today (1st November).Read more
Dr Rebecca Harding, BBA Chief Economist, said:
“Consumer credit is growing at its fastest rate since December 2006, driven by strong demand for personal loans and credit cards. Consumers are increasingly using short-term borrowing to take advantage of record low interest rates. This trend has accelerated since the Bank of England cut rates in August.
“Mortgage approvals picked up slightly this month but the housing market continues to shows signs of underlying weakness. Both house purchase and remortgaging approvals are down on the corresponding figures for 2015.
“Business borrowing decreased slightly again in September, which may be in part down to uncertainty following the EU referendum. There is a longer time lag behind corporate investment decisions so it may take longer for the effect of the interest rate cut to filter through to such borrowing.”Read more
Commenting on the figures, BBA CEO Anthony Browne said:
“Bankers and farmers could not be more different in the eyes of most people. The two sectors are typically located in separate parts of the country and play very different roles in the economy.”
“It’s important to recognise, however, that both sectors share a mutually beneficial relationship. The fresh produce that people buy in shops or get delivered to their doorstep is not only grown by farmers, it is funded by banks.
“In the face of volatile commodity prices, banks are supporting farmers in these tough times. It is vital that farmers can secure the finance that they need to invest in crops, machinery or livestock. These figures show that banks are providing this lending at record levels.
“With interest rates at an historic low, there has rarely been a better time for businesses of all sectors to borrow.”Read more
Michael Morley, Chairman of Royal Bank of Scotland International (RBSI) and former Chief Executive of Coutts, has been appointed Chair of the BBA’s Private Banking and Wealth Management Advisory Board.Read more
Commenting on the final findings of the CMA investigation into the supply of personal current accounts (PCAs) and of banking services to small and medium-sized enterprises (SMEs), chief executive of the BBA Anthony Browne said:
“Banks compete to attract and retain customers every day. They are also focused on giving their customers the best outcome for the services they provide. The CMA’s final recommendations will further help consumers with a package of measures which give individuals and businesses greater power to pick the products that are best for their needs.
“Customers and businesses have already found digital banking hugely convenient and have taken advantage of mobile technology that is allowing us to bank round the clock. We are pleased the CMA has reflected that in its recommendations.
“However, we recognise more work needs to be done to create a level playing field by supporting new banks wanting to set up business, as well as helping to grow established banks.”Read more
Dr Rebecca Harding, BBA chief economist, said:
“The decision to cut interest rates and increase quantitative easing sends a clear signal that the Bank of England is taking a ‘whatever it takes’ approach to stabilising the economy. Weak post-Brexit data is creating a perception that the economy is likely to slow and the decision to reduce rates has been made on the basis of a perception of risk.
Dr Rebecca Harding, BBA Chief Economist, said:
“This month’s High Street Banking data reflects the uncertainty that was felt ahead of the EU referendum.
“Business borrowing in June dropped for the first time in 2016, signalling that investment decisions were being delayed until after the vote.
“Mortgage lending and approvals also fell back in June but remain above the low levels seen in April following the introduction of the stamp duty surcharge.”
“Overall, business confidence was clearly fragile in anticipation of the outcome of the vote, but these results are not a verdict on the health of the economy post-Brexit. We won’t start to see that data come through until the autumn and any trends before then should not be over-interpreted”Read more
Customers are using mobile banking apps more than 7,610 times a minute, or 4 billion times a year, as part of a “consumer-led revolution” of personal finance, according to a new report by the BBA.Read more
Nominations are open for ifs University College and BBA 2016 Financial Innovation Awards, which seek to recognise and reward innovation in the finance sector.Read more