This week, the Bank of England has announced in two separate papers that UK banks will have to restructure so that they are fully compliant with certain regulations.
The Prudential Regulation Authority (PRA) has explained in these papers that banks will have to keep back office operations organised and gather estimates for the amount these changes would cost, according to CityAM.
“Keeping the back office organised” could mean that IT and HR departments would cost firms up to five percent of their operating budgets at first and then three per cent each year after that.
CityAM also highlighted how the new regulations will require affected banks to hold up to £3.3 billion of extra capital. Alongside this, banks with deposits greater than £25 billion would be forced to divide retail business from other part of the organisation that is deemed riskier by 2019.
Barclays, HSBC and Lloyds are among the few that are expected to comply with the new regulations and smaller firms will only do so if deposits exceed £25 billion.
The London listing, described as a “vote of confidence” in the UK financial centre post-Brexit, replaces the bank’s old listing on the Athens Stock Exchange.
The testing phase comes ahead of November’s scheduled go-live of the pan-European instant payment infrastructure platform.
The final settlement with the US Justice Department to settle litigation related to mortgage-backed securities sales compares with the US$14bn mooted last September.
The industry needs to digitise its core businesses, cuts costs and create increased shareholder value, concludes a report from Oliver Wyman.