Banks snub 'banking' as BBA merger heralds new identity

Britain's biggest lenders have agreed to drop the word "banking" from the name of their trade association amid opposition from building societies and other prospective members of the newly enlarged body.

Sky News has learnt that a steering committee overseeing the amalgamation of the British Bankers' Association (BBA), Council of Mortgage Lenders and two other bodies is close to choosing UK Finance as the organisation's name.

The new identity is expected to be discussed at a board meeting on Thursday, according to people close to the discussions.

The decision comes despite the fact that banks such as Barclays (LSE: BARC.L - news) , HSBC and Lloyds Banking Group will be largest fee-payers to the new organisation, and reflects continuing disquiet in other parts of the financial services industry over the poor reputation of Britain's major high street lenders.

A number of large mutuals, such as the Nationwide, are existing members of the BBA and CML.

One source played down the absence of any reference to banking in the name of the new body, saying that its strapline would be "representing finance and banking".

A review led by Ed Richards, the former boss of media regulator Ofcom, concluded last year that the BBA, CML, Payments UK and the UK Cards Association should merge in a bid to reduce costs and create a more effective dialogue with policy-makers.

One body which will not be part of UK Finance is the Building Societies Association, which informed Mr Richards that its members wanted it to remain independent.

Bob Wigley, a former Merrill Lynch executive and one-time member of the Bank of England's governing council, was chosen as UK Finance's chairman earlier this year, and is now overseeing the search for a chief executive.

Anthony Browne, the BBA boss, is understood to be among the candidates for the role, while a number of banks have been campaigning for the former Labour Treasury minister Chris Leslie to put his name forward.

Mr Leslie, who is the MP for Nottingham East, said he had not been approached about the role and said he was focused on his parliamentary duties.

Paul Smee, the CML's chief, is understood to have told colleagues that he does not wish to be considered for the role at the new trade association.

UK Finance is due to be operational in the coming months, and will face a heavy initial workload as the industry works through the implications of Britain's impending departure from the European Union.

The BBA will remain in existence, but only as a legacy body responsible for dealing with a series of class action lawsuits over the Libor rate-rigging scandal.

The BBA was the administrator of the Libor rate-setting process, earning lucrative fees from the role.

UK Finance is understood to be preparing to adopt a streamlined cost structure that will involve significant job losses from the ranks of the existing trade bodies.

None of those involved in the new organisation would comment on Wednesday.