Browne to quit role as UK’s top bank lobbyist

Anthony Browne is to quit as Britain's top bank lobbyist later this year as a new industry body begins to chart a course through the outcome of a snap General Election and the UK's exit from the European Union.

Sky News has learnt that Mr Browne has informed the board of the British Bankers' Association (BBA) about his decision to step down, with a public announcement expected to be made later on Tuesday, according to an insider.

Mr Browne's decision removes his name from the battle to run UK Finance, a new trade association being formed from the merger of the BBA, Council of Mortgage Lenders and a number of other financial sector lobbying groups.

His resignation comes five years after he joined the BBA in the midst of an unfolding crisis over the Libor rate-rigging scandal, which sparked calls for the body's abolition.

The BBA, which was responsible for administering the scandal-hit benchmark interest rate, saw its revenues plunge in the wake of the Libor affair.

Under Mr Browne's leadership, the BBA's membership and income have steadily recovered, leaving it better placed to represent the banking sector during the next two years of Brexit negotiations, according to one member.

UK Finance, which is to be chaired by Bob Wigley, a former member of the Court of the Bank of England, is in the process of recruiting its first chief executive - a role for which Mr Browne was expected to be a strong contender.

One person close to Mr Browne said he had made it clear when he joined the BBA that he saw it as a five-year role.

A number of banks have been campaigning for the former Labour Treasury minister Chris Leslie to put his name forward, although he has said he is not interested in the role.

One banker said the decision by Theresa May to call a General Election for 8 June could persuade Mr Leslie to change his mind.

Mr Browne also helped steer the BBA through the Parliamentary Commission on Banking Standards in 2013, which resulted in a series of radical changes to the way banks are governed.

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.

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.

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.

Mr Browne could not be reached for comment on Tuesday.