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LONDON, Oct 17 (Reuters) - The British Bankers' Associationannual conference on Thursday included speeches by top Europeanand UK regulators and senior banking executives.
The following comments were made, or were due to be made, inspeeches at the event or on the sidelines of the conference:
EUROPEAN BANK ASSET QUALITY REVIEW:
EU financial services commissioner Michel Barnier:
"Despite substantial improvement, more needs to be done onthe quality of banking assets. We don't expect dramatic results.But of course, these exercises may throw up certain fundinggaps."
"We are shining a light into the dark corners. Showing thatwe have nothing to hide. And we will have the necessary tools inplace to address the weaknesses.
"Either banks with capital shortfalls will need to reducetheir assets or they will have to go to the markets. The latterare now operating much more smoothly.
"If banks are not able to raise capital in the markets -which could still be the case for a few - we will have a clearframework in place, with bail-in, and national and if necessaryEuropean backstops."
SALE OF UK GOVERNMENT'S STAKE IN LLOYDS
Danny Alexander, chief secretary to UK Treasury:
"In future sales we will look at ways in which the Britishpublic can get involved in those transactions. Because we aremending the economy the taxpayer is at last getting its moneyback."
TREATMENT OF CUSTOMERS
Natalie Ceeney, Financial Ombudsman Service
"I am now starting to hear words that I like from industryleaders that I talk to. I am hearing the right rhetoric aboutturning things around. I am hearing more and more about acommitment to treat customers well."
NEW UK BANK STANDARDS BODY
Richard Lambert, tasked with setting up body:
"Its independence and governance set up is crucial ... itmust not be seen as a poodle. If it's not going to be takenseriously by the banks we might as well pack up and go home now.
"The task will get harder in 5 or 10 years time when theterrible events of the last few years have been forgotten andbank leaders no longer feel quite as committed to this sort ofidea. When things are easy and the world is back to normal thatwill be the test for this outfit."
He said he expects it to make proposals in March or April.
BANKERS' PAY:
EU commissioner Barnier:
"I remain confident that the measures (to cap bankers'bonuses) are balanced and reasonable, in the interests offinancial stability. And that our legal basis is the right one.
ALLOWING CHINA'S BANKS TO OPERATE AS BRANCHES IN UK
Jeremy Bennett, EMEA CEO for Nomura:
"I think it's good. We (Nomura) are a typical example ofpeople who choose to base themselves in London because of allthe intellectual capital. If we don't reach out to the big Asianpowers and the big investors it is at our peril.
Anthony Browne, BBA Chief Executive:
"We welcome it massively. It would be good for London as afinancial centre. However, there shouldn't be special treatment.We need to make sure that we adhere to international standards."
REGULATION INCONSISTENCY
BBA's Browne:
"(We) are concerned about the impact of internationalinconsistency in regulation - between the U.S., the EU and UKand others. This isn't just a problem for the banks, but fortheir customers."
FUTURE SHAPE OF BANKS
Bill Michael, KPMG's European head of financial services:
"Banking will become dull, and dull will be the new good.Bankers will no longer be the rock stars of the commercial worldand banking will become staid and adrenaline-free.
"As global banks reconfigure and become more countryfocused, stable returns will be demanded by investors. Volatileearnings will signal that a bank hasn't finished adapting.
"The 'dullness' of banks will drive culture and behaviour,not the other way around.
"Libor was a game changer for banking ... We are heading toa new place where universal banking doesn't exist as it doestoday. Where retail and investment banking may be split andwhere the interests of countries, and their banks, come first.
"As the philosophy of 'country-first' takes hold, globalbanks will be forced to become less global. In this new worldretail and investment banking are not comfortable bedfellows andwill likely split."
