Included in this issue: BoE quarterly bulletin examines banks’ capital allocation practices; One year review of the standards of lending practices for businesses; EBA consults on draft outsourcing guidelines and much more.

 

UK

BoE quarterly bulletin examines banks’ capital allocation practices

The Bank of England (BoE) has published its quarterly bulletin for Q2 2018, containing an article entitled ‘Banks’ internal capital markets: how do banks allocate capital internally?’ The article discusses the capital allocation practices observed in a sample of banks reviewed by the Prudential Regulation Authority (PRA). It also considers potential implications of capital allocation methods for banks and prudential regulation.

BoE, 22 June 2018

One year review of the standards of lending practices for businesses

The Lending Standards Board (LSB) chief executive, Dave Pickering, has reviewed the standards of lending practices for businesses a year down the line since its launch.

LSB, 22 June 2018

Mansion House speech on Bank of England changes for new UK financial system

At his annual Mansion House speech, the governor of the Bank of England (BoE), Mark Carney, outlined how the BoE is changing to support the development of the UK financial system, including: changes to the real time gross settlement (RTGS) system to encourage private innovation including usage of distributed ledger technologies; significant increases in the balance sheet of the UK financial sector from the UK's share of cross-border capital flows from emerging economies; and the need to manage the growing pool of retirement savings as the population ages.

FCA, 22 June 2018

 

Worldwide

EBA consults on draft outsourcing guidelines

The European Banking Authority (EBA) has launched a consultation on its draft guidelines on outsourcing. The guidelines, which review the existing Committee of European Banking Supervisors (CEBS) guidelines on outsourcing published in 2006, aim at establishing a more harmonised framework for outsourcing arrangements of all financial institutions in the scope of the EBA's action. The consultation runs until 24 September 2018.

EBA, 22 June 2018

BCBS issues progress report on banks' implementation of the Principles for effective risk data

The Basel Committee on Banking Supervision (BCBS) has published its latest progress report on banks' implementation of the Principles for effective risk data aggregation and reporting. The Principles, issued in January 2013, aim to strengthen banks' risk data aggregation and risk reporting with a view to improving their risk management, decision-making processes and resolvability.

BCBS, 21 June 2018

Key contacts

Amanda Hulme

Amanda Hulme

Partner, Head of Financial Regulation
London

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Lorna Finlayson

Lorna Finlayson

Partner, Financial Regulation
Edinburgh

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Rosanna Bryant

Rosanna Bryant

Partner, Financial Regulation
United Kingdom

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