Banks

City firms tapped for case studies to try to convince global watchdog that London has cleaned up its actThe government is asking bankers and lawyers to provide feelgood stories about how they blocked dirty money from entering the UK, as ministers try to prove the UK’s money-laundering controls are working.The Treasury’s call for evidence is meant to illustrate that the UK has upped its game when it comes to preventing financial crime, particularly since its last dismal assessment by the Financial Action Task Force (FATF) global crime watchdog in 2018, which fuelled allegations that London had become a hub for “dirty money”. Continue reading...

• Several Indian banks, including IndusInd Bank, AU Small Finance Bank, IDFC First Bank, and Federal Bank, experienced their widest exchange price gaps in decades. • The BSE Bankex gauge dropped as much as 3.3% during the auction process before recovering to close 1.7% lower. • These discrepancies were exacerbated by thin liquidity and the monthly expiry of the 14-member bank index.

• The Reserve Bank of Australia (RBA) has reduced its target share of US dollars within its foreign reserves portfolio by 10 percentage points for 2025. • This strategic shift occurs as major banks predict another interest rate hike may be necessary this year to manage economic pressures. • Separately, China's vice-finance minister pledged in late August to implement additional fiscal support measures following a loss of economic momentum in the third quarter.

• Barclays has recruited Mike Joo from Bank of America to co-lead its investment banking division as part of a broader effort to regain market competitiveness. • This move follows a trend of European lenders poaching senior talent from Wall Street to address a significant decline in their global dealmaking influence. • LSEG data reveals that European banks' share of global investment banking fees dropped from 29% in 2015 to 21% in 2025, while the US share climbed to 51%.

Billionaire CEO of world’s biggest bank says any windfall tax on sector’s bumper profits could harm jobs in the CityJamie Dimon, the boss of the US bank JP Morgan, has urged John Healey not to use his first budget as chancellor to increase taxes on banks’ bumper profits.Speculation has been growing that a windfall tax could be imposed on UK lenders to fund Andy Burnham’s cost of living agenda, with campaigners estimating such a move could raise £19bn. Continue reading...

Revelation comes after it was disclosed that Reform UK backer had paid for spying on prominent journalistThe businessman and Reform UK backer Arron Banks commissioned a private intelligence firm to dig into the Conservative party chair, in addition to having paid for an investigation into a prominent journalist.Banks, a former Reform UK candidate and leave campaign donor, appeared to confirm on Sunday that he was behind an investigation into Kevin Hollinrake. Continue reading...

• McKinsey's latest research indicates that India's economic growth is broadening, driven by strong domestic demand, digitalization, manufacturing, and exports. • Key sectors gaining significant momentum include banking, automotive, e-commerce, and private capital, signaling a diversified growth trajectory. • The report emphasizes that while these drivers are propelling the next phase of growth, businesses and investors must still navigate specific structural challenges.

• The Treasury's Financial Crimes Enforcement Network (FinCEN) has decided to permanently exempt U.S. businesses from disclosing their beneficial owners. • This decision eliminates a planned database that banks intended to use to satisfy mandatory customer due diligence requirements. • The move removes a critical tool for financial institutions attempting to identify the true owners of corporate entities to prevent financial crimes.

Industry body says use of private investigators against reporters is ‘attack on our democracy’ after apparent admission by Reform donorThe businessman and Reform UK donor Arron Banks is facing calls to lay out the extent of his surveillance of journalists, described by an industry body as an “attack on our democracy”.The News Media Association (NMA), which represents regional and national media, raised concerns after Banks appeared to admit over the weekend to hiring private investigators to spy on a Sunday Times journalist. Continue reading...

Shadow justice secretary says artist should foot bill, while others say his murals make art accessibleThree Banksy artworks have cost taxpayers almost £150,000 in cleaning, security and other costs, with the bill expected to rise.The largest bill relates to a mural painted on the Royal Courts of Justice in London in September 2025, where efforts to remove it and provide security have so far cost more than £85,000, according to the BBC. Continue reading...

Finance sector will gain from the tech but it will need substantial investment and create risks, says rating agencyThe rating agency Moody’s has said the race to adopt AI is putting big banks at the mercy of a small group of Silicon Valley firms, leaving them vulnerable to widespread outages and price gouging by profit-hungry tech bosses.The financial sector’s efforts to integrate AI into day-to-day operations will eventually cut costs and increase revenues across the City and Wall Street, Moody’s said. Continue reading...

Asked whether he targeted reporter who investigated party finances, Brexit campaigner says: ‘When you live by the sword, you die by the sword’The prominent Reform UK member and Brexit campaigner Arron Banks is said to have set private investigators on a Sunday Times journalist after he broke a series of stories about Nigel Farage.Banks is alleged to have paid for the services of investigators to examine Gabriel Pogrund, editor of the paper’s Insight investigations team. Continue reading...

• Novo co-founder Michael Rangel highlights how major Wall Street banks have effectively priced out approximately 36 million small businesses from essential financial services. • Despite the rise of fintech, Rangel notes that his own company still faces challenges in providing banking services to crypto-related firms due to systemic barriers. • The issue is critical as the solopreneur economy grows; Stripe research from June shows that 4 million Americans earned over $100,000 as solopreneurs in 2023, up from roughly 2 million in the early 2010s.

• Luxembourg has implemented a new law allowing the Financial Intelligence Unit (FIU) to warn banks and cryptocurrency platforms about accounts suspected of being linked to CEO fraud. • The measure is designed to prevent large-scale financial losses, specifically citing the need to avoid a repeat of the Caritas fraud case. • This legal shift enhances the ability of financial institutions to proactively freeze or monitor suspicious transactions before funds are irreversibly moved.

• Fixed income trading in European banking remains a "two-tiered race" during Q2, as the sector continues to struggle in the shadow of equity markets. • BNP Paribas and Barclays are locked in a competitive struggle for dominance, while Societe Generale has successfully overtaken UBS in trading performance. • The trend highlights a significant disparity in how European banks are capturing fixed income revenue compared to the more robust equity trading sector.

• Indian benchmark indices surged on Monday, August 3, with the BSE Sensex rising 544.39 points (0.70%) to 78,639.03 and the Nifty 50 jumping 390.70 points (1.60%) to 24,774.30. • The rally was primarily driven by gains in the IT and banking sectors, coinciding with strong capital inflows into the Indian market. • Global economic factors influenced the session, including strong AI chip demand boosting South Korean exports and joint FX interventions by Japan and the U.S. to support the yen.

• The Indian stock market opened higher on August 3, with the Nifty index crossing the 24,500 mark and the Sensex gaining 400 points. • Market growth was primarily driven by strong performance in the banking and automotive sectors. • Key companies in focus for the day include Maruti Suzuki, ITC, Tata Motors, Hyundai Motor, and Hero MotoCorp.

• Central banks within the Economic and Monetary Advisory Board (EMEAP) are collaborating to establish regulatory frameworks for the integration of artificial intelligence in finance. • Governors are specifically analyzing how AI developments interact with existing economic structures and the systemic risks posed by large-scale AI investments. • This initiative matters as AI transitions from a technological innovation to a primary driver of global economic influence and financial stability.

Australian banks ‘not getting the basics right’, regulator says after review of more than 200,000 home loansGet our breaking news email, free app or daily news podcastAsic has accused banks of “not getting the basics right”, after the regulator found faulty mortgage offset accounts meant borrowers were being overcharged tens of millions of dollars in extra interest payments.In a new report, the Australian Securities and Investment Commission showed lenders repaid $55m to hundreds of thousands of customers over two years for offset failures, and warned this figure would climb higher as remediation continued. Continue reading...

Campaigners urge government to introduce right of access to water, particularly as heatwaves become more commonAlmost three-quarters of riverbanks in England have no public access, according to data released by the Right to Roam campaign.Across the country, the public cannot use riverbanks or gain access to the rivers themselves in most of the river catchments from the west of Cornwall up to the Tweed, which flows through northern England and Scotland. Continue reading...

Don’t delay in taking advantage of the competition that is pushing up interest rates and increasing choice, experts sayIt is shaping up to be a decent summer for savers as fierce competition among providers pushes up interest rates and increases choice.You can currently get instant- and easy-access accounts that pay up to 5% interest, and fixed-rate savings bonds that pay almost that much. Meanwhile, those looking for a regular savings account can now get up to 8%. Continue reading...

• European banks reported stronger Q2 earnings driven by higher interest rates, increased loan growth, and M&A-related trading revenue. • Major financial institutions, including UniCredit and Santander, are scheduled to release their specific results on Wednesday, July 22, 2026, followed by BNP Paribas on Thursday. • The reporting period is particularly significant as UniCredit pursues a proposed acquisition of Germany’s Commerzbank, one of the region's largest banking deals in years.

• Euro zone banks are tightening credit standards due to rising geopolitical instability and energy risks, according to the latest European Central Bank (ECB) Bank Lending Survey. • While demand for business loans has increased, lenders are rejecting a higher share of applications, particularly within the car industry and energy-intensive manufacturing sectors. • The ECB views these trends as consistent with expectations that conflict involving Iran will drag on economic growth by increasing oil prices and reducing manufacturing profits.

Higher taxes on sector could threaten plan for £3bn headquarters in London, says Jamie DimonBusiness live – latest updatesThe boss of JP Morgan, Jamie Dimon, has warned Andy Burnham against raising tax charges on banks, suggesting it could threaten plans to build its £3bn headquarters in London and drive investment away from Britain.The chief executive of the world’s biggest bank, who has a track record of criticising the UK’s bank tax surcharge, does not want to see the UK’s new prime minister targeting the banking industry to raise extra revenue. Continue reading...

• Stock markets climbed following reports that June inflation cooled, signaling a potential slowdown in price increases. • JPMorgan Chase reported a record quarterly profit of $21.2 billion, driven by a surge in trading activity and corporate dealmaking. • These combined factors suggest a resilient financial sector and a possible shift in macroeconomic conditions that could benefit investors.

• The European Central Bank (ECB) reports that economic policy uncertainty and escalating trade tensions have weakened credit dynamics across the euro area. • Banks with high exposure to firms exporting to the United States have responded by tightening lending conditions and reducing loan demand. • These shifts impact "credit quality," specifically affecting non-performing loan (NPL) ratios and other key financial indicators.

• European companies are projected to achieve their strongest profit growth in three years during the second-quarter reporting season. • The surge is primarily driven by expected blowout results from oil majors, banking institutions, and companies benefiting from the artificial intelligence boom. • This trend signals a significant recovery in corporate earnings across the region, highlighting the resilience of key industrial and financial sectors.

• Wall Street banks are increasing their deployment of AI-powered digital assistants to enhance operational productivity and efficiency. • According to Richard James, head of AI product at UBS, these tools aggregate internal data from emails, accounts, and meetings to support decision-making. • The technology allows AI agents to execute trades and complete money transfers once a financial advisor has finalized a transaction strategy with a client.