China Curbs Online Payment in Fresh Blow to Internet Finance

From Bloomberg Business –

“China plans to tighten regulations governing the nation’s 270 online-payment firms including Alibaba Group Holding Ltd.’s finance arm, dealing another blow to the booming business of Internet finance.

Under draft rules published on July 31, the central bank will limit the amount an individual can pay online to 5,000 yuan ($805) per day through third-party payment accounts, unless the customer’s identity can be verified by a security token and electronic signature. The People’s Bank of China is seeking public feedback by Aug. 28.”

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British regulators hope to call time on banking scandals

From The Economist –

“Can misbehaving bankers be reined in? In the wake of seemingly endless banking scandals, Mark Carney, governor of the Bank of England, promised on June 10th to do just that. “The age of irresponsibility is over,” Mr Carney declared. The bank, the Financial Conduct Authority (a fellow regulator) and the Treasury hope to adopt and export a new model for regulating scandal-ridden fixed income, currency and commodities (“FICC”) markets. Recent wrongdoing in this area includes the rigging of LIBOR, a benchmark interest rate, and the manipulation of currency markets. Yet authorities have struggled to bring the individuals responsible to account.

Banks have not gone unpunished for their sins: it seems that at every recent results season, they have had to set aside ever greater provisions for fines, often sapping their already feeble profits. Between 2009 and 2014 the world’s banks incurred £160 billion ($245 billion) in such costs and set aside a further £46 billion to cover future payouts, says CCP, a research group.”

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How Size Matters: Regulatory Considerations for Growth

From Bank Director –

Gregory Lyons of Debevoise discusses the nuances of different asset thresholds and what banks must consider.