The British Bankers’ Association [BBA] looks forward to an open an honest debate about banking reform building on the measures set out by the Chancellor last summer and the proposals of the Vickers Commission.
On the specific bills of interest the BBA said:
Financial Services Bill
“The Financial Services Bill is on-going and, as expected, will be carried over into the next session. The British Bankers’ Association will continue to make representations on the Bill as we remain concerned about a number of areas and will seek to ensure that transition between regulatory authorities is implemented efficiently and effectively.”
Banking Reform Bill [Bill to implement the recommendations of the Independent Commission on Banking]
“The banking industry has already made huge progress towards strengthening the financial system. It has moved first and furthest in making these changes. UK banks are in a stronger position than any of our international competitors having started three years ago to increase substantially capital levels.
“The Banking Reform Bill builds on the reforms set out by the Chancellor last summer and follows on from the recommendations of the Vickers report. Much of the ICB agenda is already underway by other means, such as recovery and resolution plans [RRPs] which ensure that, if a bank hits a problem in the future, it has a programme in place to deal effectively and swiftly with the problem without causing problems for customers. Deposits are now protected fully up to £85K – and without taxpayers being involved even if the bank should ultimately fail. Both UK authorities and the banks believe that no bank is now too big to fail. Meanwhile the bank levy means that a permanent £2.5bn in tax is paid by the banking industry. Account switching is already being speeded up.
“Banks are committed to working with the government on effective reform. A well-functioning banking industry is essential for a modern economy and any changes will have knock–on effects for the whole economy. It is vital for everyone we work together to ensure the ring fence is in the right place.”
Justice and Security Bill [Bill to establish the new National Crime Agency]
“The British Bankers’ Association looks forward to the establishment of the new National Crime Agency as it aims to bring much needed co-ordination to the fight against financial crime. In particular we welcome the government’s commitment to a partnership bringing together the public and private sectors in efforts to combat crime. The BBA will work with the NCA Director General to put in place the most effective working arrangements between our member banks and the new agency as well a considering the details on the Bill itself.”