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 central bank has tweaked its stimulus programme and is making a fresh effort to push Japan’s inflation rate above its 2% target.
A global survey of 200 corporate treasurers by Temenos and Ovum shows that many expect at least some banking services to relocate away from London.
The US Department of Justice wants Deutsche to pay the penalty to settle an investigation into mortgage-backed securities, but the German bank has a much lower figure in mind.
Regulatory technology - aka RegTech - should become a priority for bankers as regulators increasingly focus on risk data aggregation, argues a white paper from Wolters Kluwer.