Parliamentary Commission on Banking Standards and Prepayment: Difference between pages

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(Precis main recommendations of June 2013 report & add link to summary report.)
 
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(Layout.)
 
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(PCBS).
1. ''Banking''.


The non-contractual early repayment by bank customers of, for example, fixed rate mortgages.


The Parliamentary Commission on Banking Standards was established by the UK Parliament in 2012 to:


'''A.'''
2. ''Accounting''.


Consider and report on:
An amount paid in advance for a financial benefit, represented by an asset in the organisation's balance sheet.


1. Professional standards and culture in the UK banking sector, taking account of regulatory and competition investigations into the LIBOR rate-setting scandal.
It is a prepaid expense.


2. Lessons to be learned about:


2.1. Corporate governance.
:<span style="color:#4B0082">'''''Example: Venue hire'''''</span>


2.2. Transparency.
:We book a venue for a function.


2.3. Conflicts of interest.
:And pay 50% of the hire fee in advance.


2.4. Their implications for regulation and for UK Government policy.




'''B.'''
:The 50% paid in advance is an ASSET for us.


Make recommendations for legislative and other action.
:We are going to enjoy the use of the venue in future, but it has already been paid for.


The Commission's 2013 report proposes:
:So the 50% already paid represents a future economic benefit.


(1) Making the individual responsibility of senior bankers a reality.


(2) Reinforcing each bank's own responsibility for its own soundness and the maintenance of its standards.


(3) Creating better functioning and more diverse banking markets.
== See also ==
* [[Accrual]]
* [[Average effective maturity]]
* [[Bookkeeping]]
* [[Early Repayment Charge]]
* [[Extension risk]]
* [[Prepaid expense]]
* [[Prepayment risk]]
* [[Prepayments]]


(4) Reinforcing regulators's responsibility to exercise judgement in deploying their powers.
[[Category:Accounting,_tax_and_regulation]]
 
[[Category:Identify_and_assess_risks]]
(5) Specifying the responsibilities of the UK Government.
[[Category:Manage_risks]]
 
[[Category:Risk_frameworks]]
 
The Commission's report setting out its conclusions and recommendations can be downloaded below:
 
[http://www.publications.parliament.uk/pa/jt201314/jtselect/jtpcbs/27/27.pdf: PCBS final report June 2013]
 
 
==External link==
*[http://www.parliament.uk/bankingstandards UK Parliament: PCBS]
 
[[Category:Regulation_and_Law]]
[[Category:Control_and_Reporting]]
[[Category:Policy_and_Objectives]]
[[Category:The_Treasury_Professional]]

Latest revision as of 00:50, 2 January 2021

1. Banking.

The non-contractual early repayment by bank customers of, for example, fixed rate mortgages.


2. Accounting.

An amount paid in advance for a financial benefit, represented by an asset in the organisation's balance sheet.

It is a prepaid expense.


Example: Venue hire
We book a venue for a function.
And pay 50% of the hire fee in advance.


The 50% paid in advance is an ASSET for us.
We are going to enjoy the use of the venue in future, but it has already been paid for.
So the 50% already paid represents a future economic benefit.


See also

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