Uk Says Its Local Banking Rules Eased For All, Not Just Chinese
At his second meeting with NFU Scotland since succeeding Borders MP Michael Moore last week, the Orkney and Shetland MP said an early decision was required as the proposals would be subject to consultation before being submitted to the European Commission by the end of the year. Farmers shouldnt have to wait very much longer, said Carmichael. It is very much a live issue but I dont think its a good idea to conduct negotiations in the pages of the press. He was speaking during a visit to the farm of NFUS North-east area chairman, Charlie Adam, at Braeside, Alford, Aberdeenshire. Adam said the main topic of discussion had been the danger of losing critical mass in the meat industry as a result of the continuing decline in the national beef herd and sheep flock. Carmichael went as far as saying he was not unsympathetic to the arguments being put forward for additional support for Scottish farmers but it was important for the government to get it right to avoid any legal challenge which could finish up in the courts. Its not just a political issue but a legal one, he said. We are entering a very different world under the new Common Agricultural Policy. The application of regional policy in the implementation of the CAP will be one of the last battles on agricultural policy for a few years. All the options will have to be considered and the decisions we make must count. The CAP agreement allows the UK to allocate up to 8 per cent of the Single Farm Payment as direct support for livestock production (so-called coupled payments) and NFUS wants to see this calculation based on the UK budget ceiling rather than a Scottish ceiling which would give the Scottish Government greater flexibility in applying coupled payments. UK Environment Minister, Owen Paterson, has indicated he will not use the coupling option in England which could release additional funds for Scotland. NFUS president Nigel Miller said an increased coupled payment could be a real game-changer for Scotland as it would allow the Scottish Government to supplement low area payments by increasing payments to active livestock farmers. The UK has also been granted an additional 230 million (195m) over the next five years designed to even up area payments throughout the UK. A cross-party letter signed by SNP, Labour, Conservative and Lib Dem agricultural spokespersons, including Cabinet Secretary, Richard Lochhead, was sent to the UK government last week demanding that all the extra money should come to Scotland as the only reason the UK qualifies for the funding is because of Scotlands low payments under the current system. MORE STORIES
it should be clear that this is not a special arrangement for China, rather it is part of a broader policy,” Bailey told a British Bankers’ Association conference on Thursday. Bailey said branches would only be allowed if the PRA had clear and credible assurances from the parents of banks and from their home regulator. “This is not a free for all,” he said. “Our stance is sensibly cautious, but not I think restrictive … And let me reiterate that it is a general policy, not a China policy, and it is consistent with promoting the benefits of an open world economy.” In the last five years Britain has required most overseas banks to set up their UK operations as subsidiaries rather than branches, thereby providing greater protection for depositors and taxpayers. Branches are treated as extensions of the overseas bank, leaving the British regulator with limited control over capital and liquidity. According to media reports Chinese banks have complained the rules made it hard to operate in Britain, prompting them to move much of their business to Luxembourg. But in announcing an easing of the rules Osborne was met with accusations that he was being softer on Chinese banks, and going against the trend of requiring tougher rules on capital adequacy and against money laundering. A senior UK lawmaker on Wednesday called on the PRA to show it had not been put under pressure by the government. Following Thursday’s clarification from the PRA several bankers welcomed the shift in policy as a boost for London’s financial industry. “I think it’s good,” said Jeremy Bennett, chief executive in Europe for Japanese bank Nomura. “We (Nomura) are a typical example of people who choose to base themselves in London because of all the intellectual capital. “If we don’t reach out to the big Asian powers and the big investors it is at our peril.” RESOLUTION PROGRESS Bailey said progress had been made in how banks would be wound down in an orderly way and ensure customers’ money is kept safe, meaning it was reasonable to take steps towards a resumption of the growth of cross-border banking in ways that were discouraged in the past. Cross-border banking has become divided since the 2007-09 financial crisis as regulators want to avoid having to use taxpayer money to shore up lenders again, prompting some to force foreign banks to hold more capital locally.