The British Bankers’ Association has today published a new code for financial reporting, which has been adopted by the UK’s seven largest lenders.
The new code attempts to ensure investors and regulators can access clear and transparent information about the UK’s largest lenders.
The BBA says the lenders have gone beyond what is required by international financial reporting standards as adopted by the European Union, statutory and regulatory requirements and the FSA’s disclosure rules.
Under the code, UK banks will look to re-evaluate and enhance their disclosure practices in areas which are of interest to market participants.
In adopting the new standards, best practice recommendations and considering key market areas of interest which require enhanced disclosure, it is hoped the consistent approach to reporting company information will make it easier to compare lenders.
The new standards also specify that lenders must make a clear distinction between information that is audited and information that is not in their annual reports.
BBA chief executive Angela Knight says: “The highest quality financial information is essential to building market confidence and ensuring financial stability. The BBA Code for Financial Reporting Disclosure is an excellent example of the industry working together to enhance market practice. It surpasses all of the current international and local reporting requirements and fits with the call of from the G20 and others to identify the types of risk disclosure that are relevant and useful to investors.”