BBA CONFERENCE | HIGHLIGHTS
The British Bankers’ Association (BBA) annual conference took place at the Guildhall yesterday. Here are some of the highlights:
• BBA chief executive Angela Knight (pictured, bottom right) said that some of the many regulations being introduced “simply don’t work right, don’t fit together, are not coherent”, such as the requirement to hold more capital and to lend more.
• FSA chief Hector Sants warned that the FSA’s replacement, the Financial Conduct Authority, is likely to be accused of reducing consumer choice because of its pre-emptive approach, which will involve banning products before they are mis-sold to consumers.
• Andrea Enria, chair of the European Banking Authority (EBA), said that individual EU countries should be free to gold-plate regulation, such as capital requirements, if they want to. UK regulators have expressed concern that Brussels might attempt to set both maximum and minimum standards, rather than only the latter.
• But British regulators were also warned against gold-plating: Santander UK chief executive Ana Botín (pictured, top right) said that UK regulation already goes further than EU rules, which puts British companies at a disadvantage and raises the cost of credit.
• KPMG’s Bill Michael said that stricter regulations are pushing risky activities into a “shadow banking market”. He also warned that measures to force over-the-counter derivatives into transparent clearing houses could inadvertently concentrate risk.
• Andrew Tyrie MP (below), Barclays chair Marcus Agius (right) and Bank of England deputy governor Paul Tucker also spoke.