Comments from British Bankers' Association conference
LONDON Oct 17 (Reuters) - The British Bankers' Association annual conference on Thursday included speeches by top European and UK regulators and senior banking executives.
The following comments were made, or were due to be made, in speeches at the event or on the sidelines of the conference:
EUROPEAN BANK ASSET QUALITY REVIEW:
EU financial services commissioner Michel Barnier:
"Despite substantial improvement, more needs to be done on the quality of banking assets. We don't expect dramatic results. But of course, these exercises may throw up certain funding gaps."
"We are shining a light into the dark corners. Showing that we have nothing to hide. And we will have the necessary tools in place to address the weaknesses.
"Either banks with capital shortfalls will need to reduce their assets or they will have to go to the markets. The latter are now operating much more smoothly.
"If banks are not able to raise capital in the markets - which could still be the case for a few - we will have a clear framework in place, with bail-in, and national and if necessary European backstops."
SALE OF UK GOVERNMENT'S STAKE IN LLOYDS
Danny Alexander, chief secretary to UK Treasury:
"In future sales we will look at ways in which the British public can get involved in those transactions. Because we are mending the economy the taxpayer is at last getting its money back."
TREATMENT OF CUSTOMERS
Natalie Ceeney, Financial Ombudsman Service
"I am now starting to hear words that I like from industry leaders that I talk to. I am hearing the right rhetoric about turning things around. I am hearing more and more about a commitment to treat customers well."
NEW UK BANK STANDARDS BODY
Richard Lambert, tasked with setting up body:
"Its independence and governance set up is crucial ... it must not be seen as a poodle. If it's not going to be taken seriously by the banks we might as well pack up and go home now.
"The task will get harder in 5 or 10 years time when the terrible events of the last few years have been forgotten and bank leaders no longer feel quite as committed to this sort of idea. When things are easy and the world is back to normal that will be the test for this outfit."
He said he expects it to make proposals in March or April.
EU commissioner Barnier:
"I remain confident that the measures (to cap bankers' bonuses) are balanced and reasonable, in the interests of financial stability. And that our legal basis is the right one.
ALLOWING CHINA'S BANKS TO OPERATE AS BRANCHES IN UK
Jeremy Bennett, EMEA CEO for Nomura:
"I think it's good. We (Nomura) are a typical example of people who choose to base themselves in London because of all the intellectual capital. If we don't reach out to the big Asian powers and the big investors it is at our peril.
Anthony Browne, BBA Chief Executive:
"We welcome it massively. It would be good for London as a financial centre. However, there shouldn't be special treatment. We need to make sure that we adhere to international standards."
"(We) are concerned about the impact of international inconsistency in regulation - between the U.S., the EU and UK and others. This isn't just a problem for the banks, but for their customers."
FUTURE SHAPE OF BANKS
Bill Michael, KPMG's European head of financial services:
"Banking will become dull, and dull will be the new good. Bankers will no longer be the rock stars of the commercial world and banking will become staid and adrenaline-free.
"As global banks reconfigure and become more country focused, stable returns will be demanded by investors. Volatile earnings will signal that a bank hasn't finished adapting.
"The 'dullness' of banks will drive culture and behaviour, not the other way around.
"Libor was a game changer for banking ... We are heading to a new place where universal banking doesn't exist as it does today. Where retail and investment banking may be split and where the interests of countries, and their banks, come first.
"As the philosophy of 'country-first' takes hold, global banks will be forced to become less global. In this new world retail and investment banking are not comfortable bedfellows and will likely split."
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