UK and EU set out their stalls on equivalence and the future trade deal (or no deal…?)

On 26 February 2020, the UK Government published its approach to UK’s future relationship with the EU. The sections on financial services in the UK’s approach document are set out below: Chapter 16: Financial Services The Agreement should promote financial stability, market integrity, and investor and consumer protection for financial services, providing a predictable, transparent, … Read more

FCA asks banks to explain new overdraft rates

The FCA has today written to the UK’s major retail banks, asking them to provide evidence of how they have arrived at their new overdraft interest rates, which have all been set at around 40%. The FCA also asked the banks to clarify how they will deal with customers who could be worse off following the changes, and expects firms to take “positive steps” to helps these customers – for example, by reducing or waiving interest, or offering a continuation of overdraft borrowing at current rate of interest. Read more

HKMA shares initial observations from banks’ self-assessment on culture

The Hong Kong Monetary Authority (HKMA)’s executive director for banking conduct, Mr Alan Au, recently delivered a speech on bank culture at the 1LoD Summit in Hong Kong. Although the HKMA is still in the process of reviewing the self-assessments submitted by the 30 AIs, Mr Au took the opportunity of the 1LoD Summit to provide the HKMA’s initial observations on how authorised institutions have approached culture reform, and highlighted some good practices and common issues of concern observed. Read more

Malaysia joins digital banking revolution – Bank Negara Malaysia issues Exposure Draft on Licensing Framework for Digital Banks

On 27 December 2019, Bank Negara Malaysia (BNM) issued an exposure draft on the Licensing Framework for Digital Banks (Exposure Draft). According to BNM, up to five licences may be issued to applicants to establish digital banks that conduct either conventional or Islamic banking business in Malaysia. BNM’s move to promote the development of digital banks is in line with the direction taken by regulators in Singapore and Hong Kong, which have each issued similar licensing frameworks in the past two years. Read more