British Bankers Association (BBA)

What Is the British Bankers Association (BBA)?

The British Bankers Association (BBA) is a trade association that addresses the perspectives on those associated with the banking and financial services industry inside the U.K. The BBA remembers 200 member banks with headquarters for more than 50 countries and operations in 180 purviews all through the world. A lot of global systemically important banks are members of the BBA. As the representative of the world's biggest international banking cluster, the BBA sees itself as the voice of U.K. banking.

Grasping the British Bankers Association (BBA)

On July 1, 2017, the British Bankers Association (BBA) merged with UK Finance, a trade association for the U.K. banking and financial services sector. It addresses around 300 firms in the U.K. giving credit, banking, markets, and installment related services.

The association campaigns for its members and gives its view on the legislative and regulatory system for banking in the U.K. UK Finance was the consequence of a merger of the greater part of the activities of the BBA, Payments UK, the Council of Mortgage Lenders, the UK Cards Association, and the Asset Based Finance Association. UK Finance took on a broad scope of important obligations, remembering providing normal public data for consumer credit and the mortgage market, on top of its major campaigning activities.

In addition to other things, the BBA is responsible for persistently further developing the Banking Code, Small Business Code, accounting principles, and European regulations with respect to banking practices. An extra responsibility of the BBA used to be to set benchmark rates like London Interbank Offered Rate (LIBOR), a benchmark rate that a portion of the world's leading banks charge each other for short-term loans. The Intercontinental Exchange Benchmark Administration Limited assumed control over the administration of the LIBOR in 2014, transforming it to the ICE LIBOR.

The Intercontinental Exchange, the authority responsible for LIBOR, will stop distributing one-week and two-month USD LIBOR after Dec. 31, 2021. Any remaining LIBOR will be discontinued after June 30, 2023.

Change of BBA LIBOR to ICE LIBOR

Obviously banks were controlling the LIBOR in 2012. Examinations over the supposed rigging of the LIBOR were initiated into in excess of twelve banks and Barclays Bank was fined \u00a359.5 million for downfalls connected with the LIBOR and EURIBOR as per the Financial Services and Markets Act 2000.

In June 2012, the UK's Chancellor of the Exchequer authorized Martin Wheatley to conduct an independent survey of the different parts of LIBOR. The main recommendation made by the Wheatley Review of LIBOR was to give up the LIBOR to another administrator. On February 1, 2014, ICE Benchmark Association turned into the official administrator of the LIBOR, bringing more transparency as well as a robust oversight and governance system.