BANK GOVERNOR ANDREW BAILEY PLEDGES TO LIMIT ECONOMIC DAMAGE FROM CORONAVIRUS

The new Bank of England governor Andrew Bailey has pledged to take fresh "prompt action again" when necessary to stop economic damage from the Coronavirus outbreak (BBC News). Mr Bailey reiterated the Bank's message that the economic shock should prove ?large, sharp but temporary?, adding that he was focused on protecting the economy from long-term damage. The chancellor Rishi Sunak is expected to unveil further financial support for businesses impacted by the Coronavirus at a press conference today with Prime Minister Boris Johnson, including more help for the hospitality sector (The Times, £). It comes amid speculation from former Bank of England policymakers that the outbreak could push the UK into a recession and that the government will need to step up its response (Financial Times, £, p5).

Meanwhile, the International Monetary Fund (IMF) has said it stands ready to mobilise its $1 trillion lending capacity to help countries struggling with the economic blow of the pandemic (Daily Telegraph, £, B5). Leaders of the world's Group of Seven (G7) advanced economies have pledged to do everything necessary in a united front to contain the global spread of the virus and address the economic impact of the pandemic (Reuters). The G-7 said central banks and finance ministers will need to continue coordination in supporting economic and financial stability and in developing "further timely and effective actions."

WHICH? CALLS ON ALL BANKS TO INTRODUCE ANTI-FRAUD MEASURES

Which? is calling on the government to require all banks to introduce Confirmation of Payee (CoP) in order to prevent and reduce losses to Authorised Push Payment (APP) fraud (The Guardian, p34). Which? estimates that £320 million of losses to APP fraud could have been prevented if CoP had been introduced in 2017 (Daily Mail, p37). In May 2019, a voluntary Code on APP fraud was introduced under which victims are more likely to receive compensation for fraud cases in which they weren't at fault (Daily Express, p21, print only). Which? is also calling for the Code to made mandatory for all banks.

Stephen Jones, Chief Executive of UK Finance, commented:

?The banking and payments industry is wholly committed to defending its customers from authorised push payment (APP) fraud and stopping stolen money going to criminals. The APP Code, developed on a voluntary basis by the larger firms together with consumer groups, has established stronger customer protection standards and meant more victims are receiving compensation.

"However, a voluntary agreement alone is not enough and we share the view expressed by Which? that issues of liability and reimbursement would best be addressed by new legislation. Both the government and regulators must also urgently consider how customer data breaches and vulnerabilities in other sectors such as telecoms and social media are facilitating fraud, as part of a holistic strategy to protect consumers from harm.

?While not currently mandatory under the Code, Confirmation of Payee is a major technical change to digital payments and another important tool in the fight against fraud. It is one of a range of measures used by the industry to help combat fraud, which include investing millions in sophisticated security technology, working with law enforcement to prosecute the criminals responsible and raising awareness of scams through the Take Five To Stop Fraud campaign.?

NEWS IN BRIEF

Housing regulations will be changed to require all new homes to have an ultra-fast broadband connection included, the government has announced (Daily Telegraph, p18).

Reusable mugs, crumpets and self-tanning products are among the items that have been added to the inflation basket by the Office for National Statistics (The Guardian, p33).

The number of people in work increased by 184,000 in the three months to January, according to the  Office for National Statistics, however unemployment also increased by 63,000 (Reuters).

WHAT THE COMMENTATORS SAY

Patrick Hosking, Financial Editor of The Times (£) writes that the scale of economic shock facing Britain seems much larger than when the chancellor delivered the Budget only five days ago. Mr Hosking says there is only so much ministers can do, but there is a role for policymakers to support households and help viable businesses survive. He says that ?helicopter money? given out to every household would encourage people to congregate in shopping centres and other public spaces and that it would make more sense to give this money to businesses.

Mr Hosking suggests an extension of business rates relief, a VAT holiday for firms, or a temporary suspension on employer's national insurance contributions. He highlights that cash must not be wasted ?propping up firms that are going to fail anyway? and suggests a ?reverse corporation tax?, refunding firms a portion of the corporation tax they paid last year. Mr Hosking concludes that whatever measures are taken, they must be meaty and quick-acting.

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Pavi Kathiravel writes about Take Five Week, a campaign encouraging businesses and customers alike to help fight fraud and scams.

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