The remarkable resurgence in the past 2-1/2 years came after more than a decade of rock-bottom interest rates and concerns about eurozone government debt, which soured investor sentiment towards their banking stocks.

From a sector known for generating indifferent investor sentiment, Europe’s banking industry has now become one of the best-performing in the world, with the STOXX Europe Banks index remaining at its highest range since late 2007. The rally, since 2024, has been an outstanding one, with the index rising by 143%, with higher interest rates boosting interest income, apart from swelling loan demand. So magnificent has been the performance, that the sector has defied Europe’s subpar economic growth.

Meet the key Q2 performers

Deutsche Bank
The German lender has reported a 10% jump in its second-quarter profit, with strong earnings from its global investment banking division offsetting a rise in overall operational expenses.

However, it failed to catch up with some of the American and European rivals, who benefitted from tailwinds like trading booms in the wake of the Iran war, merger and acquisition deals and initial public offerings (IPOs).

Germany’s largest bank recorded net profit attributable to shareholders of 1.64 billion euro (USD 1.87 billion) in the quarter, up from 1.49 billion euro a year earlier, bettering analysts’ expectations for a profit of 1.38 billion euro.

However, the bull run was partially dampened by an 8% expense increase.

Please attach the photo here: https://www.shutterstock.com/image-photo/goettingen-germany-march-9-2025-deutsche-2631494913?trackingId=b2150632-dbf7-4976-9d7c-b0438762a487&listId=searchResults

Deutsche Bank’s 10% profit jump still got dwarfed in front of its five top American rivals, who reported 50% increases on average, helped by booming share trading, a business the German lender exited years ago.

Deutsche’s global investment bank generated 19% more revenue than in Q1. Within the division, revenue at the fixed-income and currency trading verticals, one of the bank’s largest, rose 16%, beating the expectations for a 5.1% increase. Here, the lender outpaced rivals like JPMorgan, Goldman Sachs, Barclays and BNP Paribas.

Business, including origination and advisory services, was 36% higher, double the figure expected by the analysts. The lender was also among the ones helping with SpaceX’s IPO and Alphabet’s capital-raising.

UBS
The Swiss biggie, awaiting for clarity on new capital rules that could shape its future, booked a 17% jump in Q2 profit that beat analysts’ expectations, while announcing the plans to buy back shares worth USD 3 billion by the middle of 2027 ‌at the latest.

Apart from witnessing robust broad-based growth, UBS’ trading division delivered record quarterly revenue, in line with strong earnings both from Wall Street and European rivals.

Net profit attributable to shareholders came in at USD 2.8 billion versus a forecast of USD 2.39 billion in a company-provided poll of analysts.

UBS, which took over rival Credit Suisse after its collapse in 2023, achieved a return on Common Equity Tier 1 capital of around 17% for the first half — above its target of 15% at the 2026-end.

UBS’ Q2 net new assets for its global wealth management division came in at USD 36 billion, led by inflows of USD 14.3 billion in Switzerland. From the Americas, there was an inflow of USD 1 billion, the second consecutive positive quarter after a run of outflows due to the loss of some relationship managers. Profit before tax in the Americas surged 47% year-on-year, though the number of advisors remained below the 2025 level.

Concerned about the risks to the Swiss economy in the unlikely event of a UBS collapse, the government has sought to make the bank ⁠hold around USD 20 billion in additional Common Equity Tier 1 capital, a move which the bank feels would damage it competitively. Lawmakers are expected to water down that requirement as they begin drafting the bill in August, as many fear requiring a permanent buffer of this scale could scare off UBS’ investors.

UBS’ integration of Credit Suisse will be completed by the end of the 2026-27 financial year. It made additional gross cost savings of USD 1.1 billion in Q2, bringing cumulative gross savings to USD 12.6 billion.

StanChart
Standard Chartered’s push for fee income powered the venture towards a forecast-beating H1 profit, with the bank lifting its full-year ‌income target after surges in wealth and global banking revenues, along with the steady credit charges tied to the Iran war.

StanChart has also announced a USD 1 billion share buyback and a 20.4 cent-per-share interim dividend. The London-headquartered lender, which earns most of its revenue in Asia and Africa, saw its pretax profit for the first six months reach USD 4.78 billion, up 9% from a year ago and ahead of a USD 4.52 billion analyst forecast.

The results acted as a crucial testimony for CEO Bill Winters’ strategy to grow fee income, earning more from wealth products and cross-border banking, at a time when geopolitical and regulatory uncertainties are creating clouds over investments and dealmaking.

StanChart’s wealth income soared 38%, driven by double-digit growth in investment products as inflows and the number of new accounts increased as Iran war-related market volatility drove up demand for wealth advice.

In H1, the lender’s cross-border and corporate banking revenue rose 19%, as large corporate clients turned to the bank to ⁠borrow money, issue debt and strike deals.

StanChart’s intra-Asia income surged in the first half, including a 20% increase in China-to-Hong Kong and 45% in China-to-ASEAN activities, backed by demand for transaction and markets business. The Middle East portfolio, which represents 6% of ⁠overall exposures, had remained broadly stable despite geopolitical volatilities.

It has set aside USD 190 million as precautionary management overlays in April against expected future losses.

How other big names fared
Britain’s Barclays reported a better-than-expected 17% rise in first-half profit. However, its equities’ performance undershot market expectations, while costs came in higher.

France’s BNP Paribas also beat forecasts with a 33% profit rise in the second quarter. Domestically focused retail lenders like Britain’s NatWest, Italy’s Intesa Sanpaolo and Spain’s CaixaBank have also reported steady quarters.

Dutch lender ING posted a net result of 1.95 billion euro, surpassing analyst expectations of 1.83 billion euro, ⁠due to a 14% rise in fee income to 1.28 billion euro. The United Kingdom-based Lloyds Banking Group also reported a better-than-expected statutory ‌pretax profit of 4.3 billion pounds for the H1 2026.

Trailing behind Uncle Sam
Despite the European banking sector’s sustained rally, the continent’s lenders have remained worth a fraction of their Wall Street rivals. While JPMorgan is closing in on a USD 1 trillion valuation, the figures for the likes of HSBC and Santander are at 266 ⁠billion pounds (USD 353 billion) and 180 billion euros (USD 205 billion), respectively.

Analysts have also flagged Europe’s heavy regulation and political resistance to cross-border consolidation as key constraining factors holding back the lenders’ growth. While some central bankers say such deals are needed for European banks to compete globally, UniCredit’s nearly two-year pursuit of Commerzbank serves as the best example of what experts feel.

Despite having very few signs of rising bad loans or provisioning, European lenders, in the long run, need to be cautious against the continent’s subdued ⁠economic growth, along with the Iran war-related fallouts.

The post Europe’s banking sector extends two-year bull run on record profits appeared first on International Finance.

One of the most crucial institutes of human civilization found itself in troubled waters as it got hit from multiple angles. Both personal and institutional banking activities came to a near standstill as everyone experienced a financial crunch. The term used by S&P to describe the effect was ‘Screeching Halt’, which spoke volumes for the state of things. However, it was not the pandemic alone that affected banks. The pre-COVID banking sector was already under pressure in two main areas: competition from large and small fintech and tech fin firms, and low-interest rates.

The situation was only exasperated by the crisis, providing a stark reminder that it was time for banks to up their game.

Issues that plagued the banking sector due to COVID-19 pandemic

Banks saw a drastic reduction in investment levels while also experiencing market volatility. Activities like M&A/SPAC also saw a drop, further affecting income streams. And finally, the underutilization of brick-and-mortar bank facilities added to costs without substantial revenue to justify the spending. The aim of the banking sector in the post-COVID world was not so much about surviving – that was well within its capability, but more about how quickly it would get back on its feet.

Fortifying for the post-COVID era

There are a few areas that the sector can focus on to be better equipped for the post-COVID era. The first is digitalization. This is where fintech got it right, right from the start. If banks can digitalize and automate as many processes as possible, it could be a leap forward in getting back on track. Digitalization does not only streamline operations and makes them faster, but it also helps to lower the error rate to even zero. Automating processes helps free up resources that would otherwise be tied up doing mundane tasks. Reallocating these resources can have a considerable positive impact on the everyday running of the banking sector.

Personalized experience for customers

While going digital and moving processes online, it is also important to maintain a personalized experience for customers. Improved telephonic and video communications for customer interactions could be exactly what both banks and customers need to retain good relationships and provide reassurances in the sector’s ability to build momentum in the ‘new normal’.

In a world where many non-banking financial companies (NBFCs) already have a head start in online payments and processing of financial transactions, banks do not have to start from scratch. Collaborative ventures or even mergers and acquisitions of small yet well-equipped NBFCs could speed the process along.

Interests on loans have been the major source of revenue for banks over the decades. However, the COVID-19 crisis rocked this model to the core. Loss of jobs, and businesses collapsing made it impossible for a vast number of borrowers to pay back their loan amounts. As the number of non-performing loans (NPLs) increased, banks found themselves incurring greater losses with a diminishing capacity to absorb these losses over time. This situation is unlikely to change at a rate that would help banks recover quickly.

Focusing on alternate sources of income

One way that the banking sector could start recovering from this outcome is to focus on other sources of income. A fee-based model for revenues should be the next step to protect and stabilize the business. Developing new products and improving existing products would help to enhance fee-based revenue-generating streams. Whether we are looking at digital products like e-wallets and e-credit cards or more traditional products like lockers, Guarantees, and pay orders, increasing their attractiveness and accessibility for the customers is a move in the right direction.

COVID-19 was a shock to the system of transactional banking, which has led to a change in the business model. This new model combines and integrates technology into the survival strategy. There has no doubt been progress, and things have been looking up to an extent. However, while it is now behind us, COVID has left us with a rocky road ahead, fraught with significant recessionary and geopolitical factors that continue to influence the banking industry.

In this light, the future needs to be navigated with caution, but also with imagination and innovation playing a significant role. An attitude of openness to collaboration with various players is necessary in order to thrive and should be looked at with a fresh perspective. Typical low activities like consolidation and joint ventures are essential if banks are to emerge stronger in a post-COVID world.

The post Revival of banking sector after COVID era appeared first on International Finance.

The new insolvency law will be beneficial to both businesses and the banking sector. Individuals will have an opportunity to restructure their debts in a favourable environment and protect those who are unable to pay the debt from going bankrupt. It takes a soft approach toward debt settlement—and provisions of the new law will allow insolvent individuals to acquire new concessional loans.

The law is a well defined legal and regulatory framework for both companies and individuals. It is expected to come into effect from January 2020. With that, the UAE financial sector will be on par with robust global jurisdictions, the local media reported.

AbdulAziz Al Ghurair, Chairman of UBF, told the local media that, “As the UAE advances its positioning as a regional economic hub and financial safe haven, regulations too will evolve to support the financial well-being and stability of local entrepreneurs and business owners. I commend the Ministry of Finance for taking such a crucial step in supporting individuals in their time of need and improving the ease of doing business in the country.” 

Analysts and entrepreneurs believe the new law will have a positive effect on the economy in the long run. 

The post UAE’s new insolvency law to protect individuals mired in debt appeared first on International Finance.

China’s decision to issue the Type A licence stems from its efforts to make market advancements as US-China trade war looms. A notice posted on the National Association of Financial Market Institutional Investors observed that six banks pursued a ‘Type A’ licence at the end of August.

In the second quarter, Chinese banks showed an increase in bad debts and a decline in capital adequacy ratio. The total non-performing loans in China’s banking sector reached $316.6 billion during the second quarter. This reported an increase of 3.6 percent from the first quarter.

Louis Tse Ming-Kwong, managing director of VC Asset Management told South China Morning Post, “The increase in loan provisions for the second quarter is not surprising given the dire need of small and medium-sized companies in mainland China to raise capital.”

For Chinese banks, the prospects remain cautiously optimistic as the bank loan level representing 300 percent of GBP is high but manageable, Tse said.

The country’s total debt to GDP ratio surged to 249.4 percent in the first six months of the year, according to the National Institution for Finance and Development. The surge in debt ratio by 5.8 percentage points in the first half reflects a change in Beijing’s policy priorities, media reports said. The country’s debt to GDP ratio is used to measure economic health.

The post China grants Deutsche, BNP Type A banking licence appeared first on International Finance.

According to an expert, UAE banks are expected to maintain first-half figures of 2019 for the remainder of the year, which would take yearly profit of the UAE banks to Dh40 billion. The UAE banks are expected to make profits because of increased cost-cutting in non-core segments and further consolidation in the banking space.

The combined net profits of 18 UAE national banks increased by 16.6 percent to Dh24.5 billion in the first half of 2019, compared to Dh21 billion in the same period of 2018. The 11 banks listed on the Abu Dhabi Securities Exchange recorded a 3.5 increase in profits which amounts to Dh11.6 billion.

Dubai-based Emirates NBD posted the highest profit which came to Dh7.5 billion in the first six months of the year. In the first six months of 2018, the bank posted profits of Dh5 billion. In Abu Dhabi, First Abu Dhabi Bank was the biggest earner with profits of Dh6.33 billion in the first half of the year.

According to M.R. Raghu, head of research at the Kuwait Financial Centre, aggregate profits of the Emirati banks is likely to increase by 5 to 6 percent in the second half of 2019.

Similarly, the Islamic banking sector is also showing growth with an increase in demand for Shariah-compliant products among both Muslim and non-Muslim customers.

The post UAE banks ‘can make profits of Dh40 bn in 2019’ appeared first on International Finance.

The post Digitising the banking experience for SMEs appeared first on International Finance.

It is to be noted that talks are in the preliminary stage, as of now. ADCB has been clear in stating that it is possible that “they may not result in a transaction.”

If the talks are successful however, this three-way merger would establish an enterprise with a combined total assets of $115 billion and form the fifth largest lender in the MENA region(chart 1) after Qatar National Bank ($232 billion), First Abu Dhabi Bank ($188 billion), Emirates ($130 billion) and National Commercial Bank($121 billion).

All three banks will comprise of one mutual majority shareholder—Abu Dhabi Investment Council (ADIC). It currently owns 62.52% of ADCB, 50.01% of UNB and 100.00% of Bank Al Hilal (an investment which is not publicly listed). According to the official MENAFocus press release, this three-way merger could release “long-term value through economies of scale, synergies and overall restructuring for ADIC.” It mentions that such a proposition would be beneficial for ADIC as it would merely own a more profitable combined banking group after the implementation of cost restructuring—which in-turn would lead to surplus capital release, reduce the cost of funding and enhance the quality of the assets.

While the merger is not finalised yet and is still in its early states, the move is noted to be ‘credit positive’ for the UAE banking industry overall.

Moody’s investors service described that the merger would “increase banks’ pricing power, reduce pressure on their funding costs and increase their ability to meet sizeable investments.” The company noted that the merger could contribute to the consolidation of the “overbanked” UAE banking sector, which in turn will “increase banks pricing power, reduce pressure on their funding cost and ability to meet sizeable investments.”

‘Overbanking’ was also described in further detail in the official MENAFocus press release. It referred to the banking penetration which is measured both in terms of total assets held by the banks and the size of the population. The UAE banking sector has become by far the largest in the region, with $734 billion of assets held by banks as of end-2017—which was 194% of total GDP. Central Bank of the UAE (CBUAE) data revealed that there are 46 commercial banks operating in the UAE, with representative offices for a further 9 banks. This data did not include banks operating in the offshore vicinity of the Dubai International Financial Centre (DIFC).

These lenders were reported to cater for a population of only 10.5 million—which makes it comparable with 12 domestic banks and 15 foreign bank branches for nearly 33 million individuals in Saudi Arabia. The UAE comprises of a highly fragmented market separately, with few large banks (FAB, Emirates, NBD and ADCB) comprising of 53% of the total UAE banking sector, and many smaller lenders—something that makes it ripe for further consolidation.

UAE banks structurally are a diverse mix of conventional and Islamic entities—and are known for being both retail focused and corporate aligned in their stance. From a potential future merger perspective, this is known to offer value-added synergies. Merging of banks realises healthy synergies and in-turn potentially lowers the cost of funding through economies of scale and return on equities (ROEs). Better asset pricing discipline is also forecasted after banks merge with lower concentration risks in loan portfolios.

Overall, there is a large need for banking consolidation in the UAE, and Banks have a constant need to be better positioned to adapt to the rapidly changing operating environment. In addition, there are higher compliance costs with the implementation of new accounting standards. There is also the residual impact of VAT, which was implemented in January 2018, as well as the need for stronger corporate governance frameworks that also add to costs for the banks and increase pressure on small and medium-sized banks.

There are also regulatory amendments vis-à-vis capital market enhancements that include Base III requirements on capital adequacy and liquidity. With these, larger entities will overall be better equipped to handle global changes in the banking space over the long-term.

Moody’s also noted that banking competition in the UAE had intensified in recent years—with 60 banks being noted to serve a population of nine million. This meant that there was a drop in lending opportunities due to slowing economic and credit growth as a result of lower oil prices—and naturally leading to lenders being increasingly focused on high-quality borrowers at the expense of small-to-medium-sized enterprises—who generally have higher default rates.

Hence, a consolidated Banking system will positively impact the UAE’s currency, the dirham which is pegged to the US dollar. The reduction in competitive pressures and funding costs will lead to the reduction in the bank’s contracting net interest margins. Eventually, the banks will be able to increase their scale and revenue base—and will be able to improve their ability to meet the considerable investments related to compliance, digitalisation and new accounting standards such as IFRS9.a

The post UAE banks merger: What does this mean for the sector? appeared first on International Finance.

This is one reason why I examined the distribution of women in the banking sector in the ‘Gender Diversity in the Banking Industry’ report, in association with the SKEMA Business School Observatory on the Feminisation of Companies. The report found that although the banking industry has reached parity in terms of overall employee representation, women face a ‘double glass ceiling’; one when being promoted to management and another when being promoted to executive roles. In fact, although women make up 52% of banking sector employees globally, they average only 38% of middle managers and 16% of executive committees.

The report examined data from 71 banks in 20 countries over four hierarchical levels including the board of directors, executive committee, middle management and total representation. The figures, which were extracted from 2016’s annual reports, clearly demonstrate that at the upper levels of the hierarchy, women’s representation decreases. This is because of the ‘double glass ceiling’ effect, which prevents women from ascending up the promotion ladder as easily as their male counterparts.

What are the causes of this disparity? Many would blame unconscious bias, or the theory that men – often subconsciously – choose to promote males over their female counterparts. However, this seems like a lazy generalisation. One other industry theory that is growing in support is that women are more reluctant to put themselves up for executive positions, and so are losing out.

According to one oft-cited Hewlett Packard internal report, men apply for a job when they meet around 60% of the qualifications advertised, but women apply only if they meet 100% of them. This reserve is reportedly endemic amongst women who are naturally harsh self-critics and are less likely to put themselves forward for the top roles. The report surveyed thousands of – predominantly American – professionals and has been widely quoted in academic literature. It would certainly help to explain the ‘double glass ceiling’ effect we are seeing in the banking industry today.

Whichever theory is true, it is clear that women are facing discrimination throughout the entirety of their careers in banking. But interestingly, the ‘Gender Diversity in the Banking Industry’ report also revealed that, with 23.83% of women, boards of directors are more feminised than executive committees at 16.45%. This is due to governmentally imposed quota policies for boards of directors in some countries (for example France, Spain, Norway), as well as shareholders’ (customers, administrations, investors and medias) growing sensitivity to diversity issues.

So, is this an argument for quotas? Well, studies do unanimously show that women are less likely to gamble with assets and are sound decision-makers. Take the example of a study by Terry Odean, a University of California professor, who examined stock picking by gender for more than two decades. His seven-year study found that single female investors outperformed single men by 2.3%, female investment groups outperformed male counterparts by 4.6% and women overall outperformed by 1.4%. Why? The short answer was overconfidence. Men traded more and the more you trade, typically the more you lose — not to mention running up transaction costs.

So, scholars know that employing women on boards is beneficial to banks as it helps to mitigate risk. Not only this, but recent history reminds us that women were noticeably absent from the worst offending firms during the 2008 financial crash. By implementing quotas and promoting more women, banks would not only send positive signals that can motivate their entire pool of female employees and contribute to its positive image but also guard against the ‘group think’ pitfalls that exacerbated the most recent banking crash. These are some of the reasons why many countries impose gender quotas on the boards of their prominent banks.

Yet there are cultural disparities at a global level. For example, although banks in countries like Canada, France and Sweden, where the level of women on boards is 45%, score highly in this category, it is worth noting that Japan boasts only 12% of women on its boards of directors. This can often be explained by the cultural expectations of women and their distribution in the country’s workforce as a whole.

One observation of the last five years, particularly here in France, is that companies are becoming polarised in their recruiting habits. Where some industries are markedly more feminine, with a high percentage of females in companies and a good working culture for women, some are becoming more masculine. Take, for example, the car industry. Less women want to work in these companies, which often scout for talent at engineering schools that are heavily populated by men. Conversely, the banking sector is becoming increasingly feminine and recruits largely from business schools, which boast high numbers of women, many increasing year-on-year.

As in other sectors, reaching gender parity at the top levels of banking is a work in progress. Whilst it is unrealistic to fire male staff in favour of promoting women, work needs to be done to ensure that talent pipelining is unbiased and that women feel supported when going for the top jobs. With a wealth of data showing that women are adept at mitigating risk and ensuring that banks thrive, it is critical that finance globally becomes less dominated by men.

The post Why women in the banking sector face a ‘double glass ceiling’ appeared first on International Finance.

As a young woman, Rio has found that her age has been more of a restriction to career progression than her gender. Here’s how she has overcome gender and age barriers to carve out a niche in a male-dominated profession, and prove that age really is just a number

Why did you decide to pursue a career in finance?

I’ve always been interested in the idea of helping people reach their financial goals. Whether funding their children’s education or saving for retirement, being able to use my interest in figures to support others’ aspirations felt like a natural path for me. I studied Economics as an undergraduate and used this experience to find my first role in Finance. I haven’t looked back since.

How do you think you are challenging perceptions of women in finance?

I feel there’s less of a stigma attached to women working in finance in Asia than there is in the West. It was a steep learning curve, but I guess the best way of challenging any perception is just to go out and do it, listen intently and surround yourself with people you can learn from. That’s the approach I’ve taken.

What are the biggest strengths of women working in the banking sector?

Right or wrong, there’s still a definite perception women are practical risk-takers relative to their male counterparts. I’ve used this to generate positive portfolio returns for my clients without exposing them to excessive risk. Women are also seen to be better at managing client relationships, which has help me build client relationships, and gain insight into their needs and drivers to develop trust.

What are the most common prejudices you have come across in your profession?

From my experience alone, the greatest prejudice that I’ve encountered in the finance sector is age, not gender. Having secured my first job with Metropolitan Bank and Trust Co. straight out of university, I found myself advising high net worth clients. They were initially sceptical about taking advice from someone in her early twenties, but I remained confident that I could change this perception. Once they realised I knew what I was talking about, they began to trust me. Ultimately, building relationships with leaders like these has taught me a lot.”

The technology sector has managed to shrink the gender gap, but recent reports indicate that women in investment banking are still making less than half of what their male counterparts are. How can this be addressed?

I haven’t experienced inequality myself. I’ve been fortunate to work for an institution that rewards success and merit above anything else, so as my performance improved so did my income.

What made you quit a successful job to study an MBA? How do you plan on using this degree to further your career?

I’ve always been a very driven individual, so taking an MBA was always part of my plan. Attending a western institution with the reputation The University of Edinburgh enjoys carries a lot of prestige in Asia. It was a natural choice for me. But what’s surprised me most in my time here is just how much I’ve learned from the wider political and social environment. Being in the UK as it exits the EU and learning about the investment consequences from leading academics has been incredibly beneficial. To witness how key financial players such as the UK react to catalysts like Brexit is interesting, especially as these market responses are still heavily influence emerging markets like the Philippines.

What is your plan after completing your MBA at University of Edinburgh Business School?

I looked to the MBA as an opportunity to learn more about business in general and test new ideas. I’ve learned so much from the core subjects, electives and my peers, all of whom come from an incredibly diverse range of backgrounds and experiences. This created an avenue to exchange ideas. This confirmed that I have a passion for investing. I definitely plan to return to the world of finance which is why I’m looking at completing the necessary requirements to be a Chartered Financial Analyst. Longer term, I’m keen to apply the broader business skills I’ve learned to start my own finance consultancy.

The post When numbers matter, not age appeared first on International Finance.

The regulation, which has been years in the pipeline, is designed to harmonise data protection regulation throughout Europe and provide citizens with more control over their personal data.

It has been ratified by the UK and is due to come into force in May 2018 – almost certainly before Britain completes its exit from Europe, despite the recent triggering of Article 50.

However, a survey of IT decision makers in the banking sector by information management experts Crown Records Management has revealed some shocking results.

It showed that:

• A third (33 per cent) have cancelled all preparations because of Brexit
• A further 1 in 20 (5 per cent) have not even begun preparation
• One half (55 per cent) think the regulation will not apply to UK business after Brexit.

For so many businesses in the banking sector to be cancelling preparations is a big concern because this regulation is going to affect them all in one way or another.Firstly, it is likely to be in place before any Brexit. Secondly, although an independent Britain would no longer be a signatory it will still apply to all businesses which handle the personal information of European citizens.When one considers how many EU citizens live in the UK, it’s hard to imagine many businesses here being unaffected, especially in this sector.

UK officials and politicians were heavily involved in the drawing up of the new regulation and the general principles behind it are set in stone.

The reality is we are likely to continue to see stringent data protection in an independent UK rather than a watered down version.Our survey revealed that at least half of companies across the board saw Brexit as an opportunity for Britain to position itself as the safest place to do business through even more robust legislation.In fact, this premise was strongly supported in the banking sector with 52 per cent calling for more robust data protection in an independent UK.This means the best course is to prepare now and have a watertight information management system in place as soon as possible. This issue is not going away.

There was some good news from the Crown Records Management Survey, however. It also revealed that:

• 80 per cent of businesses in the sector with more than 100 employees have already appointed a data protection officer, one of the requirements of the EGDPR.
• 38 per cent have introduced staff training and a further 60 per cent plan to.
• 76 per cent have reviewed data protection policies.

But this is not the time to delay or give up on preparations.

The EU GDPR will bring in massive fines for data breaches – as high as 20million Euros or up to 4 per cent of global turnover – as well as new rules to ensure privacy is designed in to data policies, plus new rights for citizens to ask for their personal data to be edited or deleted.

John Culkin is the Head of Information Management Services at Crown Records Management

The post A third of businesses in banking sector have cancelled preparations for EU General Data Protection Regulation appeared first on International Finance.