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RETAIL BANKING | Staff Reporter, Singapore
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Weekly Global News Wrap Up: Will banks leave London post-Brexit?; New US rule makes it easier for customers to sue banks

And find out why the new EU banking regulations are a 'headache'.

From Bloomberg: London has flourished as a financial center for decades in part because global banks, from offices around the bustling City of London district, could sell their services freely around the European Union. Now that British voters have decided to leave the 28-nation trading bloc — the complicated international divorce known as Brexit — the city’s status as a banking hub is under threat. If U.K. firms lose easy access to Europe’s $19 trillion economy, which seems likely under the terms laid out by Prime Minister Theresa May, Britain becomes a far less attractive place to do business.

From Bloomberg: The U.S. Consumer Financial Protection Bureau is making it easier for customers to sue banks, a move sure to rile Wall Street and congressional Republicans. Financial firms will be restricted in using mandatory arbitration to block class-action lawsuits, the CFPB said in a statement Monday. Clauses requiring arbitration to settle disputes are inserted routinely in contracts for credit cards, payday loans and other financial products.

From CNBC: New banking regulations involving customer data sharing and data protection are a "headache for everyone", according to a fintech advisor at the Royal Bank of Scotland. Alan Lockhart, head of open banking and fintech solutions at RBS said banks are slow to respond and would have to play catch up with the fintech industry due to the new rules in the incoming banking legislation.

From Reuters: Britain may have left it too late to convince major banks that it can strike a deal to soften the impact of Brexit before they start shifting jobs from London. Top executives at five of the largest banks in the capital told Reuters a staggered deal on leaving the European Union is only likely to be agreed late on in talks with Brussels, meaning they have already begun relocating staff.

 

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