8 December 2017 15:07:23 The UK has a reputation for safety but a new study has found the average bank is much less safe than it was a decade ago.
The UK’s Banking Standards Authority (BSA) has launched a major investigation into the safety of UK banks, as the government continues to struggle with the fallout from the Panama Papers.
More: The BSA says it has received 2,000 reports of fraudulent transactions linked to the banking industry and more than 40,000 claims of breach of trust.
The Bank of England said last month it would investigate the bank and the Financial Conduct Authority (FCA) and the UK’s central bank will examine any evidence it has on the extent of fraudulent activity in the banking sector.
The BSA said the investigation has identified six major risks to the stability of UK banking, and it said it will make recommendations to regulators.
The report said the average UK bank was less safe in 2020 than it had been in the year before the Panama papers were revealed in 2016.
The study was carried out by independent consultancy firm IHS Markit and looked at data from over 200 financial institutions and their suppliers.
The UK was ranked second in the world, ahead of the US, ahead in a global ranking of global banks.
This is the first time the BSA has assessed the safety performance of banks in the past five years, it said.
“Banks are generally safer than they were in previous years but in some cases, this improvement may not be visible to the casual observer,” the BSB said in a statement.
“Banking institutions are also more cautious in their lending practices, more aware of their customers’ risk perceptions and more aware that customers should be able to trust the banks they use.”
The BSB has previously reported that the BPA’s annual financial health report in December showed that UK banks were safer than those in the US and the European Union.
In a statement, BSA chief executive Simon Kelly said the BSP had “made significant progress” in tackling the issues raised by the Panama leaks and the bank had received the highest number of reports of breach-of-trust for a major financial institution since the BBA launched the report in 2016.””
The BSP will now begin a comprehensive assessment of the BofA’s assessment of UK financial safety,” he said.”
The result of this assessment will provide a more in-depth assessment of how the BSE meets the BSI’s highest standards for safety.
“The bank said it had already taken the BSF to task for its lack of action.”
“We have to act to prevent these financial institutions from continuing to put customers and shareholders at risk.””
We need to act now.”
“We have to act to prevent these financial institutions from continuing to put customers and shareholders at risk.”
We will work with BSA, BSE, FSA, CBA and other regulators to get the BSU to act, and to ensure that the banks we are supporting are doing so effectively and in full compliance with their legal obligations.
“The Financial Conduct Agency (FCAA) has also been urged to look at the BSM.
Its chairman, Paul Dales, said the regulator was “well aware of the concerns and challenges associated with this situation”.”
The regulator will conduct a detailed examination of the findings and recommendations in this report, as well as further research to establish whether any further action is required,” he added.
The British Chambers of Commerce (BCC) said the government’s approach to tackling the Panama leak was “outdated” and had made it harder to recover money lost.”
This is a case of the banks being held to a different standard to the public sector,” said David Anderson, the organisation’s director of public policy.
Mr Anderson said it was “important that we know exactly what happened here” and “we need to have full and independent access to the information.””
If the information released by Panama Papers breaches the public trust in British banking, we will do everything we can to ensure the BCA is held to account and that the British taxpayer is held fully accountable,” he warned.
A spokeswoman for the Financial Services Authority (FSA) said it would be “appropriate” to discuss the BSS’s findings with regulators and would respond in due course.
‘A big issue’The BSE said it welcomed the BSCS report and its findings, but warned that “it is not a silver bullet” and that it would take time to make a decision on whether to pursue a “comprehensive review of the UK financial system”.”
In order to achieve the best possible outcome, it is essential that we undertake a thorough, independent review of how our system works,” the FSA said in an email.
But the FSA added that the regulator would work with the BSO to ensure its “best possible outcome” of a “wide-ranging review” was achieved.
Follow Tim on Twitter: @TimSimmons