October 2009
HR staff 'must do more to promote employment rights'
Staff in human resources (HR) jobs need to do more to promote employment rights among workers under their jurisdiction, according to an employment thinktank.
Speaking to Personnel Today, Stephen Overell, associate director of the Work Foundation, said: "Ensuring people know their rights is a simple, straightforward bit of good that HR can do that is more practically useful than creating stacks of new policies and procedures."
Earlier this week, a report from the Department for Business, Innovation and Skills revealed that more than 20 per cent of workers did not feel they were fully aware of all their employment rights, especially in relation to issues such as holiday entitlement and working hours.
The study also stated that, in the past five years, around 30 per cent of workers had been involved in an employment rights issue at work.
Under UK employment law, people working five-day weeks are entitled to 28 days of holiday leave per year.
Updated: 29 October 2009.
Categories: human-resources, jobs, market-and-industry-news.
Human resources directors at charities 'paid an average £75,000'
Those in human resources jobs on charity and voluntary boards get paid almost ten per cent more than other directors, according to new research.
Human resources and personnel directors took home an average annual salary of £75,000, almost £7,000 more than the average pay for directors of all kind in the sector.
More than 175 organisations and nearly 30,000 employees were interviewed for the 2009 Annual Voluntary Sector Salary Survey conducted by salary analyst CELRE, reports Personnel Today.
The study also revealed that the average pay of chief executives at organisations whose turnover was more than £50 million each year was close to £100,000 a year.
Those chief executives also received annual bonus payments equivalent to 9.5 per cent of their annual salary.
Last week, another CELRE survey revealed that almost one-quarter of employees face a pay freeze this year, a large rise on the six per cent of companies that carried out pay freezes
Updated: 29 October 2009.
Categories: human-resources, jobs, market-and-industry-news.
EU approves Northern Rock banking operations split
Under the terms of the deal, the good bank will take on customer deposits, top-rated mortgages and the bank's branch network.
Other banking operations will be put into the bad bank, which will be known as Northern Rock (Asset Management).
It will hold Northern Rock's toxic assets, such as its Granite mortgage securitisation vehicle and lower-performing mortgages that have been supported by government loans.
Gary Hoffman, chief executive of Northern Rock, said: "We are making good progress towards achieving the legal and capital restructure and will continue to work with the government and the FSA to achieve the necessary approvals."
Earlier this month, the lender, which is operating under government restraints following last year's bailout, announced a cut in its mortgage rates in a bid to make its products more competitive.
Updated: 29 October 2009.
Categories: banking-and-financial-services, jobs, market-and-industry-news.
Rory Hammerson leaves London finance job
Rory Hammerson, a fund manager at Lloyds Banking Group's Scottish Widows Investment Partnership (SWIP) Business, has resigned from his finance job with the company.
He had worked for the firm, which has bases in London and Edinburgh, for the past 12 years as lead manager on several of the organisation's European projects.
Most notable among his responsibilities in his finance job was co-managing the SWIP Pan European Smaller Companies Fund.
A spokeswoman told Reuters: "There are no imminent plans to replace Rory.
"But we will be looking to strengthen the team further down the line."
Despite the company not bringing in any new members of staff to replace Mr Hammerson, his place at the fund will be taken by Catie Wearmouth, who is currently a senior member of Scottish Widows' Europe desk.
In a busy week of changes at SWIP, the company also announced the appointment of Roger Webb as corporate bond investment director.
Mr Webb, who previously worked for Aviva Investors, will be based in SWIP's Edinburgh offices once he takes up his finance job with the company.
Updated: 29 October 2009.
Categories: finance-and-accounting, jobs, market-and-industry-news.
Santander's UK banking operations see profits double
The UK banking operations owned by Banco Santander have reported their profits have doubled compared to this time last year.
Its banking operations in the country include Abbey, Bradford & Bingley and Alliance & Leicester.
Profit levels have reached £1.16 billion for 2009, a 58 per cent rise on the figure for the same period in 2008.
Antonio Horta-Osorio, Abbey chief executive, said: "We have seen a good performance from all business areas despite continued tough market conditions."
The strong performance of Santander's UK banking operation helped it record a £6 billion profit for the first nine months of this year.
Earlier this month, the company raised more than £5 billion through a share offering in Brazil.
In 2010, Santander's banking operations in the UK will be rebranded to take their owner's name.
Abbey and Bradford & Bingley will go through the change at the start of the year while Alliance & Leicester will follow later in 2010.
Updated: 29 October 2009.
Categories: banking-and-financial-services, jobs, market-and-industry-news.
Robin Budenberg 'set to take top London banking job'
Senior UBS banker Robin Budenberg is in line to become the chief executive of UK Financial Investments (UKFI), the organisation that runs the government's bank shareholdings, according to media reports.
Chancellor Alistair Darling is set to take a decision this week over who will fill the top London banking job, with Mr Budenberg believed to be the favourite to take on the role.
He will replace John Kingman, who is leaving UKFI to reportedly join private sector advisory firm NM Rothschild.
Mr Kingman announced he was stepping down from his current post in July this year and said at the time: "I have tremendously enjoyed leading UKFI over the last year and think the organisation is now very well placed to deliver its mission of protecting and creating value for the taxpayer."
If Mr Budenberg takes on the role, one of his first tasks will be attempting the privatisation of Northern Rock under the terms of the deal that has been agreed with the European Commission.
The government is expected to face criticism over the appointment of an investment banker to the UKFI job, as one of the roles of the body is to challenge banks over remuneration levels for their staff.
Updated: 29 October 2009.
Categories: banking-and-financial-services, finance-and-accounting, jobs.
Performance-related pay 'should not just apply to London banking jobs'
A leading Conservative Party thinker has said that performance-related pay should apply not only to those in London banking jobs but also to people working in the public sector.
Writing in the Guardian, Harry Phibbs, a Conservative councillor and a blogger for the party's home and social affairs unit, said that bonuses should not be banned for those in London banking jobs if they work for companies that have not been supported by taxpayer investment.
Mr Phibbs added that performance-related pay should not just be encouraged for bankers but also for workers in the public sector.
"The rule should apply to the public sector as well - from top to bottom - whether for a caretaker cleaning a tower block or a permanent secretary in Whitehall," he said.
He said that he believed it would be fairer than simply imposing a crude pay freeze across the public sector.
Earlier this year, David Cameron said that public sector spending had to be made more efficient.
Updated: 29 October 2009.
Categories: banking-and-financial-services, jobs, market-and-industry-news.
Chief financial officers 'filling more chief executive positions'
There is a growing tendency to fill chief executive positions at FTSE 100 companies with chief financial officers, according to a media report.
Last week, former chief financial officer David Nish was appointed as the chief executive of Standard Life, something that Times journalist Sean Farrell says is part of a growing trend.
Nearly one-third of FTSE 100 companies are now led by former chief financial officers, with the position now apparently a useful stepping stone on the way to the top jobs.
Standard Chartered chief executive Peter Sands, who was promoted to the position three years ago after working as a finance director at the company, said: "Being a chief financial officer means you have a very good grasp of the technical aspects of the business and I think a lot of businesses are increasingly technical."
Earlier this week, shortly after Mr Nish took up his role at Standard Life, his company announced it is to sell its banking arm to Barclays for £226 million.
Updated: 29 October 2009.
Categories: banking-and-financial-services, finance-and-accounting, market-and-industry-news.
Barclays buys Standard Life's banking operation
Barclays Bank is to buy the banking operation of Scottish life insurance company Standard Life.
Standard Life Bank will be bought for £226 million by Barclays.
Its 270 members of staff will transfer companies and the name of the banking operation will be dropped as part of the deal.
Barclays and Standard Life have also agreed in principle to enter into a strategic partnership that will explore potential joint opportunities for the two companies in the UK financial sector.
The initial focus of the partnership is set to be on developing a new pension product.
Barclays Global Retail and Commercial Banking chief executive, Frits Seegers said: "We believe that we will be able to drive significant value for customers and shareholders - both through this acquisition and through the strategic initiative."
Standard Life group chief executive, Sir Sandy Crombie, said that the sale was agreed after his company came to the conclusion that the work of its banking operation was no longer in line with the organisation's long-term plans.
Updated: 28 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
Human resources bosses 'must warn staff over Xmas party behaviour'
Staff should be warned about their conduct at the Christmas party by their employers, according to an industry expert.
Human resources managers have been told that they should warn their staff about how they behave at the Christmas party, especially as employers still have a duty of care to their employees during such events.
Ben Wilmott, senior public policy advisor for The Chartered Institute of Personnel and Development, said human resources departments needed to be aware that their company could fall foul of the law if cases of occupational bullying or sexual harassment take place during a party.
"Employers need to remind staff of their responsibilities before the Christmas party just to make sure those sorts of issues hopefully don't arise," he said.
He added that employers should try to ensure their staff did not drink on an empty stomach by providing food and soft drinks at the party.
According to legal firm Dickinson Dees, employers should issue clear guidelines to staff before any such event in order to protect themselves from potential compensation claims.
Updated: 28 October 2009.
Categories: human-resources, market-and-industry-news.
Bankers defend themselves after Osborne attack
The British Bankers' Association (BBA) has come out fighting following a stinging attack on the financial services industry by shadow chancellor George Osborne.
In a keynote speech, Mr Osborne called on the Treasury and the Financial Services Authority (FSA) to stop retail banks and their investment arms paying out significant cash bonuses to its staff in high-level London banking jobs.
Mr Osborne suggested the cash should instead be used to support new lending.
But the BBA said that UK bankers had already shown their commitment to tighter regulation by agreeing to the FSA's new rules on bonus payments earlier this month.
"We have always said that bonuses need to be tied to the long-term success of the business and cannot reward undue risk taking," said a statement by the organisation.
It added that it believed those working in the financial sector had already proved their total and unequivocal commitment to this principle.
Updated: 28 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
Salaries increase by 7% for top London bankers
Executives in top London banking jobs are enjoying an average rise in salary of 7.4 per cent this year.
Despite bonuses falling by almost 30 per cent compared to 2008, chief executives at FTSE 100 companies are still taking home average bonuses of more than £500,000 on top of their annual salaries, according to research by pay specialist Income Data Services (IDS).
Steve Tatton, editor of the IDS Directors' Pay Report, said that while it was highly unusual for bonuses to shrink, he was surprised that the credit crunch had not affected salary increases for those in high-level London banking jobs.
Mr Tatton said companies needed to tread a fine line between rewarding staff and keeping shareholders happy.
Peter Montagnon, director of investment affairs at the Association of British Insurers, welcomed the reported fall in bonus payouts but warned top companies that pay levels remain a delicate issue.
"Companies in every sector have to remember the paramount importance of taking care with remuneration during this sensitive time of recession," he said.
Updated: 28 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
Economic contraction tipped to slow down
A banking and financial services specialist has insisted that economic conditions in the UK will improve.
Official figures released today showed that the economy contracted by 0.4 per cent during the third quarter of the year, making the current recession the longest on record.
However, Danny Gabay of Fathom Consulting, a former economist at the Bank of England, believes the UK can look forward to better times.
Speaking to BBC News, he said future rates of economic contraction should not be as bad as those seen in recent months.
"It is highly unlikely to be anywhere near as bad as the period around the turn of the year, following the collapse of Lehman Brothers," he commented.
Mr Gabay added that further economic contractions are a "distinct possibility".
Meanwhile, Ian Kernohan of Royal London Asset Management has described the latest economic figures as a "real surprise", as there has recently been lots of "hype" about the recession coming to an end.
Updated: 23 October 2009.
Categories: banking-and-financial-services, finance-and-accounting, market-and-industry-news.
Optimism 'growing among London business leaders'
People looking for permanent and temporary jobs in London could be set to benefit from rising optimism among business leaders.
Research by the London Chamber of Commerce and Industry found that more than half of company bosses in the British capital are feeling more optimistic than they were three months ago.
Speaking to BBC News, chief executive Colin Stainbridge said this has been partly fuelled by growing confidence in the wider economy.
However, he added that the overall level of optimism is still relatively low in comparison with surveys in previous years.
"Things are still nowhere near back to where they were before the recession took hold," Mr Stainbridge commented.
The findings coincide with news that the economy continued to contract between July and September, shrinking by 0.4 per cent.
Chancellor Alistair Darling said this shows the economy is "not out of the woods yet", although he added that he believes confidence is on the rise.
Updated: 23 October 2009.
Categories: human-resources, jobs, market-and-industry-news.
Banking bonuses 'help Britain stay competitive'
Awarding bonuses to people in London banking jobs is helping Britain to remain competitive, a financial official has said.
According to Lord Griffiths, vice chairman of Goldman Sachs, the banking and financial services sector should not be ashamed of rewarding its employees.
He stated that bonuses are helping Britain keep up with other markets across the world and ensuring that businesses remain based on home soil.
Lord Griffiths warned that if the government attempts to place curbs on the size of rewards for employees, banks could choose to leave the UK.
This, he warned, would be very damaging for the British economy.
"We have to accept that inequality is a way of achieving greater opportunity and prosperity for all," Lord Griffiths added.
Meanwhile, a City-based hedge fund manager has called on the public to be pragmatic and get over their "envy" of bonuses.
Speaking to the Times, the unnamed finance worker added that there should be regulations on risk-taking rather than remuneration.
Updated: 23 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
People in London banking jobs 'deserve bonuses'
People in London banking jobs deserve to be awarded large salaries and bonuses, an investment banker has said.
The Times spoke to a number of employees in the City to gauge how they feel about the public's anger over the issue of bonuses and excessive risk-taking.
One investment banker told the newspaper that it is unfair they are being seen as "pariahs", as the banking and financial services sector is not a drain on society.
Indeed, the employee said they will soon be paying the 50 per cent tax rate, money which will go to help others.
"I am proud if that money is helping the elderly and paying other children's school fees," the banker commented.
The City worker added that while their bonuses may seem vast, they are "small crumbs" in comparison with the sums they are dealing with during a working day.
This comes after chancellor of the exchequer Alistair Darling said he wants to put an end to reckless banking practices and the culture of putting "short-term profits over
Updated: 23 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
Darling: Economic confidence returning
People who are searching for permanent and temporary jobs in London have been boosted by further signs of economic recovery.
According to Alistair Darling, confidence is returning across the global economy and the financial system is far more stable than it was a year ago.
The chancellor of the exchequer attributed this turnaround partly to the "radical" action that governments across the world took to stem the financial crisis.
However, Mr Darling admitted that while the battle to stop recession becoming a global depression is being won, other challenges need to be addressed.
For example, he said a fully functional credit market needs to be implemented in order to secure long-term sustainable growth.
"We will continue to put in place tough practical measures to strengthen the banking system and protect the public interest," Mr Darling added.
Meanwhile, the CBI has reported that the manufacturing sector appears to be "turning the corner" in the wake of a "brutal" recession, as demand for UK exports is on the rise.
Updated: 23 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
London 2012 procurement jobs 'will deliver £7bn boost to UK economy'
Procurement jobs for the London 2012 Olympic Games will bring an additional £7 billion into the UK economy, according to Lord Coe, chairman of the organising committee.
He told a Telegraph Media Group event that the procurement job of providing vital materials and services for the London Games was well under way.
"We've just procured 27 temporary bridges, a contract that has protected jobs for two-and-a-half years in the England-Wales borders," he said.
"The procurement opportunity across the UK is massive."
Lord Coe said there were going to be many beneficial opportunities across the supply chain, with London 2012 needing things like 17,000 beds and around one million pieces of sporting equipment.
He added that the procurement job was a nationwide effort, with materials for the aquatic centre being provided from Wales, while the steel being used to build the Olympic Stadium was coming from Bolton.
Last month, the London Organising Committee for the Olympic and Paralympics Games said it was going to start purchasing equipment such as seats and fencing from early 2010, reported Event Magazine.
Updated: 23 October 2009.
Categories: market-and-industry-news, procurement.
Mervyn King calls for banking operations to be split up
Mervyn King, governor of the Bank of England, has made a speech raising the possibility of splitting up banking operations.
Speaking to Scottish businessmen in Edinburgh last night, Mr King said that the UK faces two main financial challenges in the long term, rebalancing the economy and eliminating the large structural fiscal deficit.
He added that banking operations were in need of reform and cited two proposals that could be adopted in future.
One was a suggestion by Paul Volcker, former chairman of the Federal Reserve, who proposed that retail banking should be kept separate from proprietary trading.
The other was a report by economist John Kay suggesting that the provision of payments services should be kept apart from the creation of risky assets.
"The common element is the aim of restricting government guarantees to utility banking," Mr King said of the two proposals.
Earlier this month, the Bank of England maintained the base rate at 0.5 per cent in a bid to support the UK's economic recovery from the financial crisis.
Updated: 23 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
London bankers 'on course for 50% increase in bonuses'
Those in London banking jobs are set to be rewarded with a 50 per cent increase in bonus payments this year, according to a new report.
The Centre for Economics and Business Research (CEBR) study said that UK bankers were on course to share out £6 billion in bonuses by the end of 2009.
It is a large increase on the £4 billion figure in 2008 but remains 40 per cent lower than 2007 bonus levels.
Although almost 50,000 London banking jobs have been lost since 2007, the CEBR report suggests that bonuses will continue to rise in the City until 2012.
Liberal Democrat Treasury spokesman Vince Cable said the rise in bonuses for those in London banking jobs was undeserved and called on ministers to ensure bankers paid their fair share of tax.
"These bonuses are coming from the fact that banks are earning money from substantial government borrowing and are able to earn bigger profits because there is less competition," he said.
Updated: 23 October 2009.
Categories: banking-and-financial-services, london, market-and-industry-news.
RBS 'aiming to put more women in top London banking jobs'
The Royal Bank of Scotland (RBS) is going to recruit more women into senior London banking jobs, according to a human resources director at the company.
Less than 15 per cent of RBS executives are women despite them accounting for 57 per cent of the staff in the company.
John Last, RBS HR director of group policy and employment, told Personnel Today that women were already being recruited in larger numbers to junior management positions.
The bank was now looking to ensure it also happened for its senior London banking jobs.
"In terms of executive roles we will have at least one female on the shortlist for those jobs," he said.
"That will get us into the marketplace to see what talent is out there."
Last week, Nichola Pease, deputy chairman of JO Hambro Capital Management, said that too much equality legislation was actually making it harder for women to get banking jobs in the City of London.
Updated: 23 October 2009.
Categories: banking-and-financial-services, jobs, market-and-industry-news.
Barclays chief 'snubs Bank of America to keep his London banking job'
Barclays president Bob Diamond has opted to stay in his London banking job after turning down an opportunity to possibly become Bank of America chief executive officer.
Media reports have said that Mr Diamond was approached by the US bank's recruitment committee and offered the chance to attend an interview for the top job, an offer he apparently declined.
Mr Diamond has had a successful year in his London banking job with Barclays and it is reported that he is set to receive a large bonus for his part in the bank's acquisition of Lehman Brothers' US operations.
Current Bank of America chairman Kenneth Lewis is due to step down at the end of the year with controversy still surrounding the bank's purchase of Merrill Lynch in September 2008.
Earlier this month, the US bank turned over documents relating to the purchase to the New York attorney general Andrew Cuomo, who is investigating the deal.
Bank of America has had two government bailouts and recently reported a third-quarter loss of more than $1 billion (£609 million).
Updated: 21 October 2009.
Categories: banking-and-financial-services, jobs, market-and-industry-news.
BNP Paribas 'plans to create thousands of banking jobs'
The bank will concentrate the majority of its new appointments in its consumer banking business, with 3,000 permanent jobs to be created in France.
It will also be hiring investment bankers despite recently cutting around 800 from the company, reports Bloomberg.
The figure matches the amount of new banking jobs filled by the company this year, although the figure represents a fall of more than 40 per cent on the 26,000 appointments it made in 2008.
BNP Paribas currently employs more than 200,000 people across the world, with more than 16,000 of them working for its corporate and investment banking divisions.
Earlier this week, the company was fined more than £600,000 by Japanese financial authorities for its involvement in a secret derivatives agreement with the now-defunct property developer Urban Corp that took place last year.
Updated: 21 October 2009.
Categories: banking-and-financial-services, international, jobs, market-and-industry-news.
Lloyds cuts 40 banking jobs in HBOS investment arm sale
Lloyds Banking Group expects around 40 banking jobs will be lost following the sale of its Halifax Bank of Scotland (HBOS) investment management operation.
It has been sold to Rathbone Brothers for around £35 million.
Lloyds has said that although compulsory redundancies will be a last resort, about 40 banking jobs will go in Edinburgh by the end of 2011 as a result of the sale.
More than £1 billion worth of funds and around 6,000 customers will be transferred to Rathbone.
Tom Woolgrove, managing director of Lloyds UK private banking, said: "Lloyds has carried out a thorough review of its private client businesses and has concluded that a specialist provider would be better positioned to manage this particular service for our clients."
Earlier this month, Lloyds, which is seeking to cut costs in the wake of last year's government bailout, sold the Halifax estate agents chain to Your Move sales and lettings business for £1.
Updated: 21 October 2009.
Categories: market-and-industry-news, procurement.
Buyers told 'golden era is over'
Buyers have been told that the golden period of falling commodity prices is over.
Robin Jackson, chief executive of procurement consultancy ADR International, said that government stimulus packages will cause inflation to hit buyers, reports Supply Management.
"We can already see it starting to happen with key commodities including copper, steel and oil, rebounding from their earlier lows," he said in ADR's business briefing for October.
He added that while inflation currently remains low, economic theory suggests that it will begin to climb in around 12 to 18 months time.
Mr Jackson said it was now up to buyers to persuade their managers that input prices will soon begin to rise.
Gold has hit several record highs so far in October 2009, while crude oil prices have recently hit £47 a barrel, a high for the year.
This morning, London's FTSE index climbed more than one per cent on the back of rising oil and metal prices.
Updated: 21 October 2009.
Categories: market-and-industry-news, procurement.
London banking jobs may be hurt by regulation, warns Barclays chief
Mr Agius said he was worried that the UK would regulate its banks more tightly than the rest of the world, making it uncompetitive in the global financial market.
He added that he was concerned that proprietary trading by people in London banking jobs had been demonised in the media, reports the Financial Times.
"If excessive risk is taken out of the system, that's good," he told the paper.
"But we have to be very careful where we draw the line."
Mr Agius also said that he was worried that the G20's proposed regulations on banking bonuses could be interpreted by different global regulators in different ways.
According to media reports, Barclays is on course to make a profit of more than £10 billion by the end of this year.
Updated: 21 October 2009.
Categories: banking-and-financial-services, jobs, market-and-industry-news.
Big bonuses planned for those in RBS London banking jobs
Staff working in London banking jobs for the Royal Bank of Scotland (RBS) are set for average bonus awards of £240,000 for 2009, according to banking analysts.
Media reports have said that RBS is set to pay its investment bankers in London up to £4 billion in pay and bonuses this year.
But the bank, which is 70 per cent owned by the government, is on collision course with ministers over the alleged plans.
City minister Lord Myners said: "We are simply not going to tolerate high levels of remuneration which are not justified and earned."
RBS has denied it plans to pay its employees in London banking jobs large bonuses, claiming the reports that some senior executives could be in line for £5 million payouts were totally without foundation.
Last week, 70 bankers walked out of the RBS's Singaporean private banking arm, Coutts, in a dispute believed to be over the amount of bonus pay they would be receiving.
Updated: 19 October 2009.
Categories: banking-and-financial-services, jobs, market-and-industry-news.
Goldman Sachs set to reward staff in London banking jobs
People working in London banking jobs for Goldman Sachs are set for huge bonuses at the end of the year after the investment bank announced third quarter profits of more than £1.8 billion.
Earlier this week, Goldman Sachs was one of nine global banking institutions that agreed to curb bonus payouts to its staff working in London banking jobs.
But that will only take effect from next year, meaning those currently working in London banking jobs at the company are in line for one final bonus bonanza.
Goldman Sachs has already set aside around £10 billion for staff bonuses for 2009, a figure that is expected to reach £12 billion by the end of the year.
The company employs around 30,000 people, meaning that the average bonus payout for staff currently stands in the region of £430,000.
But much of the bonus money is likely to go to the bank's top executives.
Last year, its top 200 employees took home an average bonus payout of more than £3 million.
Updated: 19 October 2009.
Categories: banking-and-financial-services, jobs, market-and-industry-news.
London banking jobs 'to increase in 2010'
The number of London banking jobs is set to increase next year, according to a report from an economic thinktank.
The Centre for Economics and Business Research (CEBR) said its findings showed there will be 9,000 new jobs in the financial sector in 2010, followed by the creation of an additional 11,000 jobs in the following two years.
CEBR also revised downwards its estimate of how many banking jobs would be lost over the course of 2009.
Its new figure is 18,000 jobs, down 11,000 on its prediction of 29,000 in April.
But CEBR warned those seeking London banking jobs that it could still take up to a decade before financial sector employment returns to 2007 levels.
Benjamin Williamson, CEBR economist, said: "Re-regulation of London's wholesale financial services sector will act to limit its economic activity over the medium term."
Earlier this week, the Financial Services Authority wrote to chief executive officers at more than 5,000 companies to say it will be vetting who they appoint to their top London banking jobs.
Updated: 19 October 2009.
Categories: banking-and-financial-services, jobs, market-and-industry-news.
Buyers 'considering ditching Royal Mail'
Many buyers are considering switching their postal service from Royal Mail, according to a survey.
A Supply Management survey of workers in procurement jobs found almost 40 per cent of them are considering ditching Royal Mail's services.
The Communication Workers Union, which represents Royal Mail staff, has announced national post strikes are to begin from Thursday October 22nd 2009.
More than three-quarters of postal workers backed the decision to strike in the dispute which centres around pensions payments and increased workloads.
Bill Fyfe, procurement manager at the National Trust for Scotland, told Supply Management that his organisation had saved around £70,000 per year thanks to a recent switch of postal supplier.
Many of the 63 per cent of buyers who said they were not interested in switching postal services also stated they did not use such services very often.
Instead they have switched to delivering items traditionally delivered by post, such as pay slips and invoices, via email.
Updated: 16 October 2009.
Categories: jobs, market-and-industry-news, procurement.
Female banker attacks effect of equality laws on London finance jobs
Ms Pease told the Commons Treasury Select Committee that legislation on issues like maternity leave was actually making it harder for women to get finance jobs in the City of London.
This was because it made firms believe that hiring women would be a nightmare, she said.
"We've got to be realistic and make sure the protection, which has very good motivation, doesn't end up backfiring both at a female level and at a UK competitiveness level," she told the committee.
Ms Pease, who has three children, also stated she believed sex discrimination claims that ran into millions of pounds were ridiculous.
In May 2009, Labour deputy leader Harriet Harman said she wanted to introduce legislation to boost the number of women in top London finance jobs at the UK's partly nationalised banks.
Updated: 16 October 2009.
Categories: finance-and-accounting, jobs, market-and-industry-news.
PwC gives advice to those seeking London accounting jobs
Accountancy firm PricewaterhouseCoopers (PwC) has advised young people looking for accounting jobs that they should focus on gaining vital employability skills.
Sonja Stockton, head of recruitment at PwC, said those looking for accounting jobs in London and across the UK should spend time gaining internships and attending summer academies if they want to boost their employment prospects.
"Academic capability is a vital foot in the door, but employability skills push it open to much wider opportunities," she said.
She added that if businesses act sensibly and recruit well, the UK could have a new generation of workers who had already learned hard business lessons.
Employment vacancy freezes have taken place across many financial and accounting sectors, but PwC is currently beginning recruitment of more than 1,000 people for accounting jobs in London and the rest of the country.
PwC has just been appointed to investigate £100 million worth of alleged unauthorised transactions made by Tawhid Abdulla, the former chief executive officer of the Dubai jewellery company Damas.
Updated: 16 October 2009.
Categories: finance-and-accounting, jobs, market-and-industry-news.
FSA crackdown on London banking jobs
The Financial Services Authority (FSA) has warned the institutions under its remit that it plans to crackdown on who they recruit for top London banking jobs.
It has sent letters to chief executive officers at more than 5,000 firms to say it will undertake close vetting of candidates and even interview those applying for London banking jobs in positions of significant influence.
Graeme Ashley-Fenn, FSA director of permissions, decisions and reporting, said: "The onus is on firms to ensure candidates applying for influential positions are fit and proper to perform the role."
The letter urged financial organisations to provide the FSA with sufficient information on each candidate, along with the reasons they believe the candidate is a fit and proper person for the job.
In the past year, 18 people applying for London banking jobs have been rejected by the FSA.
Last week, the FSA fined investment bank and stockbroker Seymour Pierce more than £150,000 for failing to prevent employee fraud.
Updated: 16 October 2009.
Categories: banking-and-financial-services, finance-and-accounting, jobs, market-and-industry-news.
Global banking operations agree to UK bonus reforms
Global banking operations like Goldman Sachs and JP Morgan have agreed to curb their bonus payments in the UK.
UK banking operations had already agreed to the new rules on bonuses that were drawn up at last month's G20 summit in Pittsburgh and now the major international financial institutions operating in London have followed suit.
The nine banking operations, including Bank of America and Citigroup, signed up to the regulations following a meeting with financial services secretary Lord Myners.
Lord Myners said that it was important for the financial sector to take a responsible approach to remuneration if it was to regain the trust of the public.
"I am pleased that the most significant banking institutions operating in the UK have moved quickly and are supporting our implementation of the agreement reached on bank remuneration at the G20," he added.
In September, Lord Myners told the Daily Telegraph that he believed bankers were still being paid too much money.
Updated: 14 October 2009.
Categories: banking-and-financial-services, finance-and-accounting, international, market-and-industry-news.
UK named as number one banking and financial services centre
London is the top destination in the world for banking and financial services, according to a recent study.
The World Economic Forum's Financial Development Report rated the UK's financial system higher than Australia's and that of the US, which came in second and third.
Lord Davies of Abersoch, minister for trade, investment and small business, commented: "Our status as the leading financial centre of the world is based on our openness, fairness and wealth of international talent."
He added that he believes the country's "entrepreneurial and innovative spirit" will put the country in a strong position to capitalise when the economic situation improves.
The UK recently rose in the Doing Business Report rankings from the World Bank and was named the fifth best country in the world.
Earlier this month, banking and financial services in the UK were given a further boost after the annual European Cities Monitor's survey, conducted by Cushman & Wakefield, ranked London as the best for business for the 20th year in a row.
Updated: 14 October 2009.
Categories: banking-and-financial-services, finance-and-accounting, jobs, market-and-industry-news.
Banks asked to rein in bonuses to save London banking jobs
Treasury minister Lord Myners is holding a meeting with overseas financial institutions operating in the capital in an effort to save London banking jobs.
He is expected to put pressure on them to reduce bonuses in order to create a level playing field with regards to remuneration after UK banks agreed to take steps to limit cash payouts, reports the Daily Mail.
It is thought that about ten major banks will be at the meeting, including senior representatives from JP Morgan, Deutsche Bank, Goldman Sachs, Citigroup and Morgan Stanley.
The big five UK banks, HSBC, Royal Bank of Scotland (RBS), Lloyds Banking Group, Barclays and Standard Chartered have already agreed to limit the bonuses paid out to those in London banking jobs.
However, this is not the case at foreign banks operating in London - Goldman Sachs for example, is expected to award its staff around the world a total of more than £14 billion in pay and benefits this year.
This comes after bonus caps were blamed for 70 people walking out of banking jobs at the international arm of RBS in Singapore, the Scotsman reported.
Updated: 14 October 2009.
Categories: banking-and-financial-services, finance-and-accounting, jobs, market-and-industry-news.
Banking and financial services 'face years of government involvement'
The banking and financial services organisations bailed out by the government will not return to full privatisation for years to come, according to chancellor Alistair Darling.
He said the government expected to remain a shareholder in the banking and financial services sector for as long as it takes to restore it to health.
Mr Darling told the BBC: "It will be some years before the government is able to sell the last of its shareholdings."
The chancellor added that although the banking and financial services sector had largely stabilised, the extent of the global financial crisis meant there were still many challenges ahead.
But he would have been buoyed by news earlier in the week that the FTSE had reached its highest point since September 2008, a sign recovery may be beginning in earnest.
In October 2008 the government pledged billions of pounds of taxpayers' money to keep the Royal Bank of Scotland and Halifax Bank of Scotland afloat.
Updated: 14 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
Human resources jobs in Whitehall 'could be privatised'
Human resources and IT jobs in Whitehall could be privatised, according to media reports.
The government is considering outsourcing back office functions for the Civil Service, reports Sky News.
Around 30,000 IT and human resources jobs would be affected in a move that could have the potential to save taxpayers millions, as the new companies would provide a cheaper service.
The government believes that privatisation could also be highly lucrative for the public purse as the new companies would be floated on the stock market.
Mark Kleinman, Sky's City editor, said: "These companies would essentially take over traditional Whitehall back office functions like human resources, IT and potentially part of the government's vast property portfolio."
The rumoured move would form part of Labour's attempts to cut the UK's budget deficit.
Earlier this week, Gordon Brown announced a £16 billion asset sale would take place in an attempt to begin combating the deficit.
Updated: 13 October 2009.
Categories: human-resources, market-and-industry-news.
Top London banking job 'to be offered to Lord Turner by Tories'
If the Tories win the upcoming general election they will offer city regulator Lord Turner of Ecchinswell a top London banking job at the Bank of England, according to media reports.
The Conservative Party aims to offer Lord Turner, who is currently chairman of the Financial Services Authority (FSA), the role of deputy governor at the Bank of England, reports the Times.
David Cameron plans to scrap the FSA if he comes to power but Lord Turner is seen as too valuable to get rid of.
The Conservative Party believes the current regulatory system, which involves the FSA, the Bank of England and the Treasury, does not work.
But in September shadow chancellor George Osborne that it could take several years to scrap the body.
Before running the FSA, Lord Turner was director general of the CBI and is reported to hold serious ambitions of eventually becoming governor of the Bank of England.
The Conservative Party has refused to confirm the reports.
A spokesman for Mr Osborne said: "George has a high regard for Lord Turner's ability but has absolutely not started handing out jobs to anyone."
Updated: 13 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
Accounting jobs in the UK could benefit if firms take advantage of a new EU directive, says a government minister
Business minister Ian Lucas said the EU Services Directive, which is being put in front of Parliament today (October 12th 2009), will provide the opportunity for jobs and growth in sectors such as accounting and business consultancy.
Mr Lucas said: "Services account for about 70 per cent of Gross Domestic Product but only 20 per cent of cross-border trade in the EU.
"But the market for services in Europe is opening up."
UK businesses which sign up to the scheme will get an EU-GO logo and will be able to do business with other countries through a central page on the European Commission website.
Earlier this month the Wall Street Journal reported that the amount of positions for accounting and financial staff has risen in the UK for the first time in 18 months.
Updated: 13 October 2009.
Categories: finance-and-accounting, market-and-industry-news.
Scottish banking jobs 'migrating to London'
Scottish banking jobs are migrating to London as a result of the government buy-out of Royal Bank of Scotland (RBS), according to a former RBS boss.
One year after billions of taxpayers' money was poured into the bank in order to keep it afloat, Sir George Mathewson said that senior executives and banking departments were moving from Edinburgh to London.
He told Scotland on Sunday: "It's almost inevitable.
"You have the banks now run by people who have no interest in keeping jobs in Edinburgh."
Despite the apparent recovery of the banking industry, with RBS shares up nearly 400 per cent on their January 2009 price, Sir George said many great challenges still faced the banking sector.
These included reintroducing an element of competition into the dealings of banks with each other, along with winning back the trust of consumers.
A group of RBS shareholders are reported to be preparing a legal case against the bank after seeing the value of their shares deteriorate despite helping to fund a £12 billion capital rights issue in April 2008.
Updated: 13 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
Human resources bosses hit back at journalist
Human resources bosses have struck back at a journalist who used his weekly column to claim that 90 per cent of human resources jobs should be got rid of.
Sathnam Sanghera said in the Times that human resources work is not worth the number of salaries, conferences and job created by the industry.
While acknowledging there was some truth in his observations on the self-obsession of the sector, human resources experts said there was another side to the story he presents.
Alan McGillivray, human resources group director at house builder The Gladedale Group, told Personnel Today: "The economic turmoil has had a positive impact on the perception of human resources, but only for those human resources leaders and teams who have risen to the challenges presented by the seismic shifts across UK Plc."
Neil Morrison, group human resources director at publisher Random House Group, agreed with Mr McGillivray and said that there were good and bad human resources professionals, just as there were good and bad journalists.
Updated: 13 October 2009.
Categories: human-resources, market-and-industry-news.
Human resources challenges lie ahead for top companies, survey warns
Human resources challenges will face some top companies in the next decade as once-powerful brands struggle to attract top talent, according to research.
The PricewaterhouseCoopers (PwC) survey found that trust between employees and employers had been damaged by the effects of the recession on some companies.
Jon Terry, head of reward and a partner at PwC, which won employee benefits consultant of the year at the FT pensions and investor provider awards, said: "Pay and promotion freezes, changes to pension schemes, cuts in recruitment and slashed training budgets, combined with poor communication, have eroded the bonds of trust."
But he said those companies which had managed to retain the trust of their employees during the recession would face fewer human resources challenges in the future.
He said businesses which had offered their employees new opportunities and engaged their workers were set to be the long-term winners when the UK escapes the economic downturn.
More than 700 workers were interviewed for the survey, with almost half saying they understood their employers had to make tough decisions in the recession.
Updated: 13 October 2009.
Categories: human-resources, market-and-industry-news.
Workers in human resources jobs receive new TUPE guidance
People working in human resources jobs have received new guidance on how to deal with Transfer of Undertaking (Protection of Employment) (TUPE) issues.
The guidance has been launched by the Chartered Institute of Personnel and Development (CIPD) with the aim of helping human resources workers involved in business transfers and service provison changes.
It believes that although TUPE guidelines already exist, there is a lack of practical information available for those in human resources jobs.
The guidance sets out minimum standards that should be met by all parties during the preparation and transfer of staff between businesses.
Ben Willmott, senior public policy adviser at CIPD and editor of the guide, said: "In too many instances managers have to rely on trial and error which creates real risks that service delivery will be compromised."
TUPE regulations have existed since 1981 to provide employment rights to employees when their employer changes.
The powers of TUPE regulation were revised and broadened in 2006 by the government.
Updated: 13 October 2009.
Categories: human-resources, market-and-industry-news.
Pay rises in top London finance jobs
Executives in top London finance jobs received pay increases during last year and may be in line for further increases in 2009, according to a survey.
Salaries of the chief executive officers at FTSE 100 companies rose by one per cent during 2008 to an average £2.5 million.
Those in the top London finance jobs could benefit from a further increase next year as the stock market has rallied, reports Bloomberg.
Cliff Weight, director of remuneration consultant MM&K, which carried out the research alongside Manifest Information Services, said: "There may be a temporary slowdown but the long-term drivers of executive pay, such as matching remuneration in the US and in private equity are still there."
Earlier this week, London was voted the best place to work in business in Europe for the 20th consecutive year.
But Prime Minister Gordon Brown recently announced there will be new rules linking remuneration to a company's long-term performance, a policy that is also shared by the Conservative Party.
Updated: 08 October 2009.
Categories: finance-and-accounting, market-and-industry-news.
Banking and financial services companies react to base rate hold
Banking and financial services companies in the UK have shown broad support for the Bank of England's decision to maintain the base rate at 0.5 per cent
for the seventh month in
a row.
The decision by the Bank's Monetary Policy Commission (MPC) had been widely expected.
Banking and financial services companies reacted by acknowledging the need for the freeze in the uncertain economic climate, but there were disagreements over when the rate would rise again soon.
Stephen Boyle, head of RBS Group Economics, told the Guardian that the MPC would have to decide in its November Inflation Report meeting whether recent signs of recovery were a false dawn or the beginning of a full recovery.
But Ben Thompson, mortgage director at Legal & General, said that his company expected the base rate to rise eventually.
"We expect the MPC to hold interest rates steady for some time but rises are inevitable, so borrowers must be prepared," he said.
Updated: 08 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
London finance jobs 'are best in Europe'
London is the place to be when it comes to finance jobs, according to top businessmen from across Europe.
A survey of 500 senior executives from leading European businesses has found that they think London is Europe's best
business city.
It is the 20th year running that London has come top in the survey, which was carried out by global commercial property and real estate firm Cushman & Wakefield.
London finance jobs were found to be the best when judged on factors such as easy access to markets, external transport links and availability of qualified staff.
Darren Johnson, chair of the London Assembly, said he was pleased with the results but there was no room for complacency, especially as the city had scored badly in regards to its pollution levels.
"London has an awful lot going for it but we have got some problems which the mayor needs to address," he said.
He added that the London Assembly would be closely examining the mayor's long-term planning strategies for London, which are due to be published next week (week beginning October 12th 2009).
Updated: 08 October 2009.
Categories: finance-and-accounting, market-and-industry-news.
HSBC 'in talks to buy RBS's Asian banking operations'
HSBC Holdings is in advanced talks with Royal Bank of Scotland (RBS) over buying its banking operations in India, China and Malaysia, according to media reports.
According to a report by the Wall Street Journal, acquisition talks between the pair have grown in momentum after Standard Chartered's interest in the assets cooled following price negotiations.
RBS spokeswoman Yuk Min Hui said: "RBS is in ongoing discussions with bidders for the remaining assets it has decided to sell in Asia and will make further announcements in due course."
Both HSBC and Standard Chartered, which was originally in exclusive talks with RBS over the Asian banking operations, declined to comment on the newspaper's story.
The assets are being sold off as the bank attempts to cut its costs in an attempt to repay the government bailout it received in October 2008.
Media reports are suggesting that RBS is also considering outsourcing around £1.2 billion worth of its IT operations to India as it bids to slash operational costs by about £2.5 billion by 2011.
Updated: 08 October 2009.
Categories: banking-and-financial-services, finance-and-accounting, market-and-industry-news.
Banking operations told 'base rate will not rise during 2010'
Banking operations and the rest of the financial sector have been told that the base rate is unlikely to rise above 0.5 per cent in the foreseeable future by a leading group of economists.
Benjamin Williamson, from independent consultancy the Centre for Economic and Business Research (CEBR), said his organisation believed that the Bank of England would maintain its loosened monetary policy over the course of next year.
Speaking ahead of Thursday's Bank of England announcement on base rate levels, Mr Williamson said that rates were unlikely to rise in 2010 due to the current weakness of the recovery and the expected sharp fiscal contraction.
"We're extremely unlikely to see any movement in interest rates, but we think also that, with the Inflation Report coming out in November, they could look to expand quantitative easing," he said.
CEBR's forecast is a contradiction of the CBI's latest economic forecast.
Last month the CBI told banking operations it expected the base rate to start rising in the first quarter of 2010 and to have reached two per cent by the end of the year.
Updated: 08 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
Tailor CV for each job, applicants told
People looking for permanent jobs in London have been advised to tailor their CV to the role they are applying for.
According to London South Bank University, jobseekers need to make a "real effort" to alter aspects of their CV
each time they send it out.
Margaret Holbrough, careers advisor at the institution, said this would make it obvious to recruiters that they have written it specifically for that company or industry.
"They should try and identify and emphasise their unique selling point with reference to that industry," she commented.
Ms Holbrough urged applicants to ensure their CV fully reflects the requirements of the organisation as described in the job advert or company website.
She added that people seeking permanent jobs could also research whether the firm they are applying to has specific values or policies, such as a firm stance on the environment.
Applicants could then mention on their CV or covering letter that they want to work for an organisation which shares their own values.
This comes after the Chartered Institute of Personnel and Development forecast a gradual increase in net job creation in the UK.
Updated: 08 October 2009.
Categories: human-resources, jobs, market-and-industry-news.
Banking and financial services firms 'showing first signs of recovery'
Banking and financial services firms have begun to show the first signs of recovery in the past three months, according to a survey from the CBI.
For the first time in two years business volumes grew across the sector and firms reported more optimism with the overall business situation in the CBI/ PricewaterhouseCoopers (PwC) poll.
Ian McCafferty, CBI chief economic adviser, said that a fall in running costs had helped lift profitability.
But companies remained worried about lack of demand and levels of business continue to remain well below normal.
Mr McCafferty warned: "Future demand is still a major concern for financial services firms, however, and further pain will continue to be felt in job losses and lower investment."
The overall picture saw finance houses and general insurance firms see unexpected levels of growth while banking business volumes stabilised, but insurance brokers and building societies saw business continue to fall.
This confounded hopes expressed in June's CBI/PwC survey, in which building societies were optimistic this quarter would see stability return to their market.
Updated: 08 October 2009.
Categories: banking-and-financial-services, jobs, market-and-industry-news.
Banking and financial services 'to reduce risky strategies'
Banking and financial services in the UK will return to traditional banking models with tough times ahead in the next few years, according to an economic expert.
Vicky Redwood, who works for economic research consultancy Capital Economics, said that the financial sector was starting to make decent profits once more but it would never reach the size of the past.
"We're going to see a reduction in the more risky parts of financial engineering and a return to more traditional banking," she said.
More than 90 per cent of UK banking and financial services firms think it will take more than six months for the sector to return to normal, according to a recent report from the CBI.
But its report also showed that business volumes grew in the last quarter, with firms becoming more optimistic about the overall business situation.
However, the CBI estimates that around 40,000 people in the banking and financial services sector may lose their jobs in 2009, with more than 22,000 redundancies already made in the first six months of the year.
Updated: 08 October 2009.
Categories: banking-and-financial-services, finance-and-accounting, market-and-industry-news.
PwC welcomes new FSA liquidity rules for banking operations
PricewaterhouseCoopers (PwC) has cautiously welcomed the new rules on the levels of liquidity at the UK's banking operations that are to be implemented by the Financial Services Authority (FSA).
Banking operations will be required by the legislation to collectively increase their holdings of government bonds by £110 billion once the economic recovery has been assured.
PwC said the new rules were commendable but argued that the stringent regulations did not have to be applied to all types of financing companies.
Patrick Fell, a director in PwC's UK financial services regulatory practice, said: "Recent liquidity failures at banks do not necessarily mean firms of all types require a new intensity of liquidity regulation."
He added that global regulation was needed in future to stop liquidity failures hurting international banking.
The FSA has said it wants foreign regulators to follow its lead on its new regime, which will mean only government-issued bonds qualify for its liquidity test of banks.
But the rules will be slowly phased in to allow banking operations to adjust to them.
Updated: 06 October 2009.
Categories: .
Whitehall departments praised over its procurement job
Whitehall departments have been praised by the government for driving improvements in procurement capabilities.
The Office of Government Commerce (OGC) has published its findings of the first wave of the Procurement Capability Review (PCR) programme, which has resulted in several changes to procurement practices across Whitehall.
Nigel Smith, chief executive of the OGC, said: "If Government is to ensure that it meets its efficiency targets then it is vital that momentum is maintained, especially through developing the procurement skills base that currently exists."
The introduction of PCR targets in 2007 has led to the appointment of new senior departmental commercial staff, along with the creation of new commercial strategies.
It is part of the government's Operational Efficiency Programme, which aims to save the public purse almost £8 billion by 2014 through collaborative procurement measures.
Shadow chancellor George Osborne used his speech at the Conservative Party conference today to suggest the Conservatives could make efficiency savings of more than £23 billion over the course of the next Parliament.
Updated: 06 October 2009.
Categories: .
Permanent banking jobs to be created at HSBC
HSBC has opened up new permanent jobs for bankers and announced plans to increase its staff numbers worldwide in 2010.
Chris Meares, chief executive officer of HSBC's global private banking division, said that the company, had already begun the recruitment of new staff.
But he told the Reuters Wealth Management summit in Singapore that recruitment levels were unlikely to reach the 10 per cent annual increases of the past.
"I don't think we will add 10 percent to our global workforce next year, but we will certainly add a few per cent," he said.
Mr Meares added that HSBC was aiming to expand its operations in Brazil, Mexico and the Middle East.
But his positivity has been overshadowed by HSBC chief executive Michael Geoghegan, who told the Financial Times he would be cautious over expansion plans due to the possibility that the UK may return to recession.
Updated: 06 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
FSA finalises tough new liquidity rules for UK banking operations
The Financial Services Authority (FSA) has told UK banking operations that tougher new liquidity rules will be phased in slowly to ensure economic recovery is not damaged.
New regulations will eventually require banking operations to increase their holdings of government bonds by £110 billion - a measure that the FSA says should ensure the future liquidity of UK financial institutions.
Under the City regulator's liquidity test only government-issued bonds will qualify under the new rules.
But the FSA said the rules would be slowly phased in while a tougher new quantitative regime will not be fully enforced until economic recovery is assured.
Paul Sharma, FSA director of prudential policy, said: "Phasing the period in which firms will build up their liquidity buffers should mitigate the knock-on effects to bank lending."
However, bank boards will have to have a liquidity policy in place to show the FSA by the beginning of December 2009.
British taxpayers have paid out £37 billion in rescue capital to stricken banks since October 2008 as global banking operations collapsed.
Updated: 06 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
New levy for banking operations 'would stop reckless behaviour'
Banking operations should face a new levy so they can pay for any future financial crisis, according to a top figure at the Bank of England.
Deputy governor Paul Tucker, who is responsible for ensuring financial stability in the UK, said he believed such a charge would be a way to stop banking operations behaving recklessly and would encourage more stringent internal regulation.
"If the banking system knew that, in a systemic crisis, the banking industry would over time pick up the bill - if there was a bill - I would like to think that that would change your incentives," he told the Institute of International Finance in Istanbul.
Fees are already charged to banks for the Financial Services Compensation Scheme, but Mr Tucker, who has been deputy governor since March 2009, said the levy would be separate to those charges.
But Doctor Josef Ackerman, IIF chairman, said that care must be taken to ensure economic growth was not undermined by over-zealous regulation of the financial sector.
Updated: 06 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.
Banking and financial services firms 'showing first signs of recovery'
Banking and financial services firms have begun to show the first signs of recovery in the past three months, according to a survey from the CBI.
For the first time in two years business volumes grew across the sector and firms reported more optimism with the overall business situation in the CBI/ PricewaterhouseCoopers (PwC) poll.
Ian McCafferty, CBI chief economic adviser, said that a fall in running costs had helped lift profitability.
But companies remained worried about lack of demand and levels of business continue to remain well below normal.
Mr McCafferty warned: "Future demand is still a major concern for financial services firms, however, and further pain will continue to be felt in job losses and lower investment."
The overall picture saw finance houses and general insurance firms see unexpected levels of growth while banking business volumes stabilised, but insurance brokers and building societies saw business continue to fall.
This confounded hopes expressed in June's CBI/PwC survey, in which building societies were optimistic this quarter would see stability return to their market.
Updated: 07 October 2009.
Categories: banking-and-financial-services, finance-and-accounting, market-and-industry-news.
Banks Back Curbs on Bonuses
Employees in London banking jobs look set to be affected by new restrictions on the size of bonuses.
Five banks in the UK have accepted the proposals that were drawn up by world leaders at the recent G20 summit in Pittsburgh.
HSBC, Royal Bank of Scotland, Standard Chartered, Lloyds Banking and Barclays issued a joint statement that said it is right to make sure staff are "appropriately and competitively rewarded for sustainable, long-term performance".
The statement also stated that the banks acknowledge that the G20 has come up with these reforms to ensure there is a "level playing field" in the banking and financial services sector.
Chancellor of the exchequer Alistair Darling has welcomed the move, saying it should "set the standard" for financial institutions in the UK and overseas.
He added that it is vital that Britain's financial services industry takes a "responsible and long-term" approach to remuneration.
The G20 last week agreed to take over the role of coordinating the world economy from the G8, which means that emerging nations such as India and Brazil will now have far more say over global economic policy.
Updated: 02 October 2009.
Categories: banking-and-financial-services, finance-and-accounting, market-and-industry-news.
