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Banks told to reveal tech meltdown plans

Banks told to reveal tech meltdown plans

Technology
UK banks have been told to explain how they would cope with a technology failure or cyber-attack.The Bank of England and the Financial Conduct Authority have given financial firms three months to detail how they would respond if their systems failed.Some TSB customers were left unable to access online banking for more than a month following a botched systems upgrade in April.Banks could be ordered to take action if their plans are judged to be poor.The Bank of England and FCA have emphasised that senior management at banks will be held accountable for prolonged disruption to services.The two organisations have launched a consultation seeking the views of customers as well as banks, insurers and other financial institutions. The regulators have warned that...
Banks finalise inter-creditor agreement to deal with NPAs

Banks finalise inter-creditor agreement to deal with NPAs

Finance
With a view to fast track NPA resolution, bankers today finalised the inter-creditor agreement (ICA) framework that envisages effective communication among lenders.The ICA mechanism is expected to be enforced this month itself.The non-performing assets (NPAs) in the banking sector crossed Rs 9 lakh crore at end-December 2017 and the RBI has warned of further worsening of the situation.The agreement, a part of Project Sashakt, will be taken to boards of respective banks and would be cleared in couple of days, said PNB non-executive chairman Sunil Mehta after the meeting.The meeting called by Indian Banks Association was also attended by Finance Minister Piyush Goyal, who had accepted the report of the Sunil Mehta Committee earlier this week.Mehta said inter-creditor agreement is a participa...
India's massive state banks are in trouble. That's great news for some

India's massive state banks are in trouble. That's great news for some

Finance
India's banking sector crisis has left most state lenders hamstrung with mounting levels of bad loans, investigations into fraud and restricted growth opportunities. Amid that storm, private banks are set to emerge as winners. India's public-sector financial institutions control about 70 percent of all banking assets in the country, but they have the highest exposure to soured loans amounting to as much as $ 150 billion. In fact, the 21 state-owned banks had stressed loans of about 8.26 trillion rupees ($ 120 billion) as of Dec. 31, Reuters reported. Private sector lenders, meanwhile, reportedly had a bad loan pile of just ab...
Banks could have to pay out 'billions' more in PPI claims

Banks could have to pay out 'billions' more in PPI claims

Business
People who were not mis-sold PPI policies may be able to claim billions of pounds more in compensation, following a court ruling in Manchester.Christopher and Joanne Doran were awarded all the sales commission they paid plus interest for a policy, a total of £17,345.They are the first people to have all of their commission payments refunded for a legitimately sold policy.However anyone wanting to make similar claims would have to go to court.The commission is the money paid to firms who sold the policies to consumers on behalf of the insurers.Under the Financial Conduct Authority's existing guidelines, consumers who were sold their policies legitimately may still be entitled to claim back commission which is deemed excessive.This means that policy-h...
SBI, other banks using AI big time to improve efficiency, cut costs

SBI, other banks using AI big time to improve efficiency, cut costs

Finance
NEW DELHI: Indian banks, including state-owned SBI and Bank of Baroda, have started deploying artificial intelligence (AI) in a big way to improve efficiency, detect human behaviour and reduce operational costs. State Bank of India, the India's largest lender, has SBI Intelligent Assistant (SIA) -- a smart chat assistant, evolved from the "cutting edge technology of artificial intelligence, that efficiently resolves queries of NRI customers, similar to that of a bank representative. "It provides instant solutions on everyday banking queries in the chat box on the SBI portal," the state-run lender said. The bank is also in the process of instituting an 'Innovation Centre' that will explore how emerging technologies such as AI and Robotic Process Automation (RPA) can help in making intern...