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.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.
The EU and US’ shift in accounting standards may bring balance sheet losses and increase credit risk, according to James Elder, director of risk services at Standard & Poor’s (S&P) Global.
Technology will drive the innovation in banking: Damian Richardson, head of payments strategy & innovation at NatWest
At this year's Sibos conference in Toronto, digital finance reporter, Alara Basul, sat down with Damian Richardson, head of payments strategy and innovation at NatWest to discuss how technology is driving innovation in banking.
#PSD2FinishLine recently started trending on Twitter. As the country slowly grows in excitement throughout the month of November, with the C-word on ... read more