The British Bankers Association has commissioned Oliver Wyman to conduct an in-depth study on the competitiveness of the UK banking sector. The research, which will be led by the firm’s Vice President Hector Sants, aims at uncovering scenario's geared at improving the sector’s global competiveness.
Amid growing concern that new, tougher regulation and a potential exit of the UK out of the European Union will affect business of the UK banking sector, the British Bankers Association (BBA) has decided to commission a review to investigate the country’s competitiveness internationally. “We want to make sure that the UK continues to benefit from the hundreds and thousands of jobs and tens of billions of taxes that are currently provided by the banking industry in this country,” explains Anthony Browne, BBA’s Chief Executive. “It is in no one's interest for the UK's biggest export industry to lose its global competitiveness.”
The review will focus on outward-looking competitiveness and compare the country’s banking sector to other countries and jurisdictions. The aim of the study will be to provide recommendations that are “progressive and implementable”, allowing the sector to improve its competitiveness.
To support the execution of the ‘competitiveness review’, the BBA has hired management consulting firm Oliver Wyman, an expert in the financial services industry. The engagement will be led by Hector Sants, Partner and Vice President at the firm and former CEO of the Financial Services Authority.
Sants and his team will investigate the impact of the new Markets in Financial Instruments Directive (MiFID II), the Capital Requirements Directive (CRD IV) and the Vickers reforms on the UK banks and their competiveness. In addition, they will research the potential effects of the proposed financial transaction tax (FTT) between banks and the risks associated with the UK leaving the EU.
The final results of the review are expected in autumn this year and will be presented to the British Bankers Association as well as the UK Government.