Regulation Correspondent, Europe
Huw's Feed
Jul 1, 2015

Global regulators propose tighter credit risk rules for banks

LONDON (Reuters) – Global banking regulators have proposed a more comprehensive set of rules for banks to set aside capital to cover losses from their exposures to other lenders and limit fallout in a crisis.

During the financial crisis some banks suffered big losses on their derivatives contracts due to weaker creditworthiness at banks on the other side of their trades.

Jul 1, 2015

Bank of England delves deeper into market illiquidity conundrum

LONDON, July 1 (Reuters) – The Bank of England’s risk
watchdog will extend its focus beyond making banks more stable
to look at the lack of liquidity in fixed-income markets, which
are now braced for more volatility as bonds price in eventual
interest rate rises.

The Bank’s Financial Policy Committee (FPC) said in its
twice-yearly report on Wednesday that some markets had become
less liquid to cope with heavy sell-offs, but the reasons for
this were “not yet well understood”.

Jul 1, 2015

Bank of England says primed for action over Greek crisis

LONDON, July 1 (Reuters) – The Bank of England said on
Wednesday it stood ready to take any action required in response
to Greece’s worsening debt crisis, which could trigger wider
problems on financial markets.

Greece on Tuesday became the first advanced economy to
default on an International Monetary Fund loan after the
government in Athens broke off talks with its creditors and shut
down banks.

Jun 29, 2015

‘Brexit’ would be disaster for UK financial sector – industry group

LONDON (Reuters) – A British exit from the European Union would be disastrous for the UK financial industry and could prompt companies to leave the country, the sector’s main lobby group said on Tuesday.

TheCityUK also said the British government should hold the referendum on whether to leave the bloc next year, rather than wait until 2017, so companies who are drawing up contingency plans could make investment decisions as early as possible.

Jun 26, 2015

EU banking watchdog recommends cutting capital charges on pooled debt

LONDON, June 26 (Reuters) – European Union banking
regulators have proposed cutting capital charges for high
quallity securitised debt by a quarter in a bid to kick-start
the market and help fund economic growth.

The market was tarnised in 2007, when some securitisd debt
based on U.S. home loans turned sour, helping to sow the seeds
of a global financial crisis.

Jun 25, 2015

EU capital markets plan must protect investors better – UK watchdog

LONDON, June 25 (Reuters) – The European Union’s plan for a
unified capital market needs more work to protect investors from
losses if it is to provide the economic boost policymakers’ are
hoping for, a top British regulator said on Thursday.

Martin Wheatley, chief executive of the Financial Conduct
Authority, said the planned Capital Markets Union (CMU) was a
laudable aim, but much would hinge on implementation.

Jun 24, 2015

Bank of England plans credit union reform to help sector flourish

LONDON, June 24 (Reuters) – Credit unions need new rules to
reflect the broader range of financial services offered by the
local loan and savings organisations, the Bank of England said
on Wednesday.

The central bank’s Prudential Regulation Authority (PRA)
published proposals to reform regulation of credit unions, which
are being promoted by policymakers and the Church of England as
a viable alternative to costly pay-day lenders and a banking
sector tarnished by scandals and the financial crisis.

Jun 23, 2015

Britain finalises “toughest” banker bonus rules in the world

LONDON, June 23 (Reuters) – Top bankers in Britain could
have their bonuses clawed back a decade after they were awarded
under proposals from regulators on Tuesday that would make
industry pay curbs the toughest in the world.

Critics said the plans meant that British banks would have
to pay a premium to attract top bankers from overseas, while
lawyers questioned whether they could be enforced.

Jun 22, 2015

Insight – Market watchdogs fight back against central banks

LONDON (Reuters) – An uneasy truce between market watchdogs and central banks, struck during the financial crisis, is showing signs of strain as they look for ways to tackle potentially extreme volatility in bond markets when interest rates start to rise.

The watchdogs are worried central banks will try to impose bank-style rules such as capital requirements on market players like asset managers and specialist funds.

Jun 22, 2015

Market watchdogs fight back against central banks

LONDON (Reuters) – An uneasy truce between market watchdogs and central banks, struck during the financial crisis, is showing signs of strain as they look for ways to tackle potentially extreme volatility in bond markets when interest rates start to rise.

The watchdogs are worried central banks will try to impose bank-style rules such as capital requirements on market players like asset managers and specialist funds.

    • About Huw

      "Huw is based in London and covers European regulatory issues and global rulemaking bodies such as the G20, Financial Stability Board, IOSCO, IASB and the Basel Committee. He has covered EU regulation in Brussels, the emergence pan-European stock markets, and has also been a Wall Street reporter in New York."
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