Barclays share price: Bank and peer HSBC to quit UK mortgage trade body

Two of Britain’s largest banks have quit the Council of Mortgage Lenders (CML), the trade body representing mortgage lenders, ahead of an industry decision on whether to merge a number of associations.

HSBC (LON:HSBA) has handed in its notice of intention to leave the CML at the end of December, after the requisite one-year notice period. The blue-chip lender said in a statement yesterday: “Given the anticipated creation of a new financial services trade association, we have given one year’s notice to the Council of Mortgage Lenders and our membership will end on 31 December 2016. HSBC supports the creation of a new trade association which will better serve all providers in the financial services sector and most importantly, our customers.”

Barclays (LON:BARC) is also understood to be pulling out of the mortgage trade body. However, a group spokesperson said, as quoted by the Financial Times: “We can confirm Barclays will remain a member of the CML during 2016 and will participate fully.”
The move comes after a proposal emerged last summer to combine the CML with the British Bankers’ Association, Payments UK, the UK Cards Association and the Asset Based Finance Association. In the first quarter of the year, CML members will decide by vote on whether the CML should become part of the proposed new structure. The body represents about 95 percent of the UK’s mortgage lending market, but other banks could opt to pull out following the decision by HSBC and Barclays.
Both lenders have been trading lower today amid a generally subdued UK stock market trend. As of 09:47 GMT, Barclays’ share price was 1.97 percent down at 179.40p. Meanwhile, HSBC had declined 0.40 percent to trade at 472.60p.
As of 09:59 GMT, Wednesday, 27 January, Barclays share price is 179.68p.

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