Simon Hills: Challenges for Banks

Tue, May 15th 2012 at 12:00 am -

Simon Hills - Executive Director British Bankers' Association (BBA) and Court Member Worshipful Company of International Bankers

Simon Hills, who is an Executive Director at the British Bankers' Association, a trade association with 170 members that represents the interests and supports the aims of the City of London, started saying that the City of London had suffered significantly over the past 5 years since the start of the financial crisis in 2007. He asked how we got into the sorry state that confronted us since the Lehman collapse. The regulators would say:
- inadequate liquidity buffer (Northern Rock),
- too much leverage: Banks gearing up their balance sheet and lending extra funds to property developers until the property bubble bursts,
- poor governance and risk management at some institutions,
- inappropriate incentive and remuneration structure

was leading to
- excess growth,
- mispricing of risk and liquidity,
- search for higher yield.

We all benefited
- governments were able to borrow cheaply to fund infrastructure projects and public sector pensions,
- citizens to afford to buy houses they could never have dreamt of,
- banks - because business intermediation and maturity transformation produced big earnings,
- employees through salaries and bonuses.

Hills said, now that we are in the business of recovering and rebuilding our reputation we have to work differently and in a sustainable way and with a focus on our customers. "I am espousing a more ethical approach in context of society's norms and aspirations" and "a code of good business conduct .... to act with integrity...and to be aware of conflicts of interest....".

The Basel Committee on Banking Supervision (BCBS) sets standards that require banks to hold more and better quality capital and a sufficient quantum of liquidity to tide them over a period of financial stress. The Basel III proposals, which BBA broadly supports, include a robust regulatory framework that supports financial stability and market confidence. The new accord calls for the first time to create a single European rule book for banking, which, once approved, will be binding on all member states.

The implications are
- Banks will have to raise more longer term funding
- which in turn will increase cost of longer term borrowing.

No-one has done an impact analysis of what these changes add up to and what the impact on the real economy is likely to be. "With good lobbying from BBA and others we should be able to define it by the 2019 final implementation date", Simon concluded.

Juergen Schuhmacher

Related pages...

Louise Richmond | Kitchen Social

more Zoom meeting: Tuesday, 4 May 2021, 7pm | Louise Richmond and Clara Widdison will talk to us about Kitchen Social, a charitable programme of the Mayor's Fund for London.

Julia Burbach

more Innovation and Adaption in Art

Visiting Rotarian from Hong Kong

more At our 26 February 2019 fellowship meeting we welcomed visiting Rotarian Ms Anisha Ramanathan. Anisha gave an informative and interesting talk about Hong Kong matrimonial law. Anisha's home club is the Rotary Club of Hong Kong Kowloon Golden Mile.

Duncan Christie-Miller

more Our guest speaker talked about the important connection between the mind and the body

Kate Nelson | Rotary Foundation Global Scholar

more We had the pleasure of welcoming Kate Nelson to our 5 March 2019 meeting. Kate talked about her experience as a Global Scholar while studying Epidemiology at the London School of Hygiene & Tropical Medicine.

Alex Werner | Lead Curator New Museum at the Museum of London

more The move to West Smithfield

Visiting Rotarian from Bahrein

more At our luncheon meeting today we welcomed Mr Mazen A Alumran, DGE District 2452, Bahrein Manama.

President Saroj Chhabra and The Revd George Bush

The Revd George Bush

more The Revd George Bush, Rector of St Mary-le-Bow Church, has given us an inspiring talk about the history of the church and its relevance for the parish, the Church of England and for The City of London.

Marco Carnelos

more On 19 June 2018 we welcomed Marco Carnelos, who spoke to us about the new geopolitical balance in the Middle East.

Christopher Le Brun

more Christopher Le Brun, Director of the Royal Academy of Arts gave a fascinating talk on the Arts

Sir Roger Gifford

more Our guest speaker is a Director at SEB Bank London and former Lord Mayor of the City of London. He was speaking on the prospects and challenges for the financial sector in the UK, impressing the audience by his positive attitude to change and challenges.

Dr Michael Pick, Nuclear Physicist

more Nuclear fusion, energy for our grand children

Dame Fiona Woolf DBE

more Our guest speaker Dame Fiona gave an intriguing and fascinating account of her year as the Lord Mayor of the City of London

Julia Burbach, Production Director - Royal Opera House

more Julia Burbach spoke to us about her work at the Royal Opera House. The most recent and much acclaimed production was the opera Ortello (Verdi) with Jonas Kaufmann.

Dr Georg Krawietz - Brexit impacting the future international academic cooperation and student exchange programs

more Guest Speaker: Dr Georg Krawietz, Director of the German Academic Exchange Service (DAAD) London - Brexit impact on the future International Academic Cooperation and Student Exchange programs

Dr Martin Gaskell, Master Educator at the Worshipful Company of Educators

more Dr Martin Gaskell - Seeking Excellence in education

Marianne Schneider-Petsinger

more Ms Schneider-Petsinger is a Geoeconomics Fellow, US and the Americas Program at Chatham House. The topic of her talk was: After the Election: US economic policy and what does it mean for Europe?

Michael Welbank MBE: The City of London Corporation

more Michael Welbank MBE, Chief Commoner of the City of London Corporation

Prof Giulio Cossu: Regenerative medicine: achievements, hopes and hypes

more Evening Meeting

Prof Claudio Stern: Twinning - the ultimate regeneration

more Guest Speaker: Prof. Claudio Stern - Two for the price on one: Twinning - the ultimate regeneration

Dr John White - Communication in support of politics and diplomacy

more Lunchtime Meeting

Ulrich Kuenker - The Preussag Collection

more The Preussag Collection: Loeserthalers - an efficient financial investment?

Event Organiser

Nadia Spita - Arts Management


Dr Mischa Lentz, EBRD: Infrastructure Investments in Developing Countries

more Dr Mischa Lentz, EBRD

Keith Best: The Magna Carta

more Fellowship Meeting

Chelsea and her Host Councillor Suraiya

Guest Speaker: Ms Chelsea Mertz, Ambassadorial Scholar Rotary Foundation

more My time with Rotary

Ulrich Kà¼nker, Fritz Rudolf Kà¼nker GmbH & Co. KG, Osnabrueck, Germany

more Guest Speaker: Ulrich Kà¼nker - Can Numismatics be a good investment ?

Mark Huleatt-James: The Honourable Artillery Company

more Guest Speaker: Mark Huleatt-James - the Honourable Artillery Company

RIBI President 2014/15 Peter King

more Peter King, RIBI President 2014/15 - RIBI and latest developments, Visiting Rotarian Gianluca di Loreto, RC Roma East

Rear Admiral Philip L Wilcocks CB DSC DL

more Fellowship Meeting

HE Dr Dominik Furgler, Swiss Amassador to the UK

more Guest Speaker: HE Dr Dominik Furgler, Swiss Amassador to the UK - The Swiss referendum on immigration, Europe and Financial Markets.

Anita Brien - St Joseph's Hospice

more Guest Speaker: Ms Anita Brien, Community Fundraiser, St Joseph's Hospice Charity

Dr Maike Wittorff - Homoeopatic Medical Treatment in the areas of crisis in this world and at home

more Fellowship Meeting

Antimo Magnotta - musician, composer, writer and Costa Concordia survivor

more Fellowship Meeting

Ms Audri Day, Reform Club International Events Secretary - Sybille Bedford: Life, Love, Literature

more Fellowship meeting

Manny Rasores de Toro: Cars and traffic - Past, Present and Future

more Guest Speaker: Manny Rasores de Toro - How to cope with traffic and parking in the next decade

Chris Cotton: The Royal Albert Hall

more Guest Speaker: Chris Cotton - Chief Executive Royal Albert Hall

Prof Roberto di Lauro: The human genome project

more Guest speaker : Prof. Roberto di Lauro, scientific attaché at the Italian embassy in London, on 'Human genome project'

Ebe Campi: The European Patent Organization

more Guest Speaker: Rn Dr Ebe Campi - The European Patent Organization, A Success Story

Frances Johnson: Sightsavers

more Guest Speaker: Frances Johnson - Sightsavers

Unur Ulaankhuu: Mongolia

more Guest Speaker: Ambassadorial Scholar Ms Unurtsetseg (Unur) Ulaankhuu

Mark Little PHF: Child Slavery

more Guest Speaker: Mark Little - Child Slavery

Nynke Brett: Made in Hackney

more Guest Speaker: Ms Nynke Brett - Made in Hackney

Bert Lourenco: Ludwig Von Mises and the Austrian School of Economics

more Guest Speaker at our 21 January 2014 meeting: Bert Lourenco, HSBC Bank Investment Research

Emma Mukerjee - Providence Row Homeless Shelter

more Guest Speaker: Emma Mukerjee - Providence Row, an oasis for the homeless in East London and The City

Joachim Steffens - German General Elections

more Guest Speaker Rn Joachim Steffens on the German General Elections

Rear Admiral Karl-Wilhelm Ohlms: What is the job of a Defence Attaché ?

more Rear Admiral Karl-Wilhem Ohlms

Nick Watts: Dealing with Government

more Nick Watts: Dealing with Government

Andrew Sentance CBE: Global Economic Shifts - The New Normal

more Global economic shifts - the new normal

Joachim Steffens: Alternate Director Germany, EBRD

more Current Developments at the European Bank for Reconstruction & Development

Graham Bishop - Developments in the European Financial Markets

more Guest Speaker: Graham Bishop - Developments in the European Financial Markets

Prof. Emeritus Michael King - Shale gas

more Prof. Michael King, Emeritus Professor, Department of Earth Science & Engineering at London Imperial College on sourcing shale/natural gas from fracking

Dr Emil Brix - Austria's role in Central and South East Europe

more Talk by His Excellency Dr Emil Brix Austrian Ambassador to the Court of St James's

Brigardier General Marcello Bellacicco - Afghanistan

more General Bellacicco gave an intriguing account of the situation in the North-Western part of Afghanistan

Itsuki Kuroda - Ambassadorial Scholar

more Ms Itsuki Kuroda, Ambassadorial Scholar Rotary Foundation, from Fukushima, Japan, was our guest speaker at the 18 September evening meeting

Christine Clarke - Physio Fit for Olympia

more Physiotherapist Christine Clarke talkes about getting fit for Olympia

Tom Hoffman: The rise and decline of Guilds and Livery Companies

more The Rise and Decline of Livery Companies - tracing their history, the powers they accumulated and the powers they lost

Dame Carol Black, left, with Holly Holm-Schuhmacher, centre, and Marisa Amati

Dame Carol Black: Trends and Concerns in Health

more Dame Carol Black: Trends and Concerns in Health

Colin Grey: The science of getting work done

more On 30 August 2011 Colin Grey from C.D.P. Time Management gave an interesting talk about 'The Science of getting Work done'.

Matthew Jackson: Korea

more On 2 August 2011 Matthew Jackson gave an interesting and enlightening talk about Korea. The passion he feels for this country, its people and their culture duly came across.

Endrik Wottrich: Trends in modern society

more In his talk on 3 October 2011 Endrik Wottrich presented an artist's view on the negative trends in the modern society

Steven Davis: Too big to fail ?


Hugh Cantlie: China Talk


Dr Wolfgang Richter: Rotary HQ visit

more Our fellow Rotarian Dr Wolfgang Richter gave a fascinating account of his visits to the Rotary International World Headquarters in Evanston,USA and to ROTARY/One in Chicago.

back to page above this...


back Please select one of the reports in the ' Related Pages' section