Regulation Correspondent, Europe
Huw's Feed
Oct 24, 2014

Bank of England paper says some clearing houses may need more capital

LONDON (Reuters) – Clearing houses may need bigger capital cushions as more and more trading in financial derivatives comes their way, the Bank of England said in a paper on Friday.

BoE Governor Mark Carney has said that regulators must make sure that clearing houses don’t end up becoming the new breed of “too big to fail” financial firms.

Oct 24, 2014

BoE paper says some clearing houses may need more capital

LONDON, Oct 24 (Reuters) – Clearing houses may need bigger
capital cushions as more and more trading in financial
derivatives comes their way, the Bank of England said in a
paper on Friday.

BoE Governor Mark Carney has said that regulators must make
sure that clearing houses don’t end up becoming the new breed of
“too big to fail” financial firms.

Oct 24, 2014

UK bank stress test capital measure changed late in process-sources

LONDON, Oct 24 (Reuters) – Britain’s regulator told banks
this week they must use a stricter measure of how they measure
capital under a health check of lenders that will be released on
Sunday, people familiar with the matter said.

The European Banking Authority (EBA) is assessing how 123
European banks would cope under a recession scenario and will
release its findings of their capital strength on a so-called
transitional basis.

Oct 23, 2014

Global regulators agree new capital yardstick for insurers

LONDON, Oct 23 (Reuters) – Global regulators have written
the first global capital rule for insurers, marking a key
milestone in efforts since the 2007-09 financial crisis to
reinforce supervision of the sector.

The aim is to make sure big insurers hold enough capital at
all times to meet commitments to policyholders and withstand the
ups and downs in markets.

Oct 23, 2014

Bank of England sets out tough regime for failed banks

LONDON, Oct 23 (Reuters) – Top managers of a failed bank
would be replaced immediately and creditors told within two days
the losses they will bear, the Bank of England said on Thursday
in its blueprint for avoiding taxpayer bailouts in future
financial crises.

This is the first time the British central bank has set out
the steps it would take over an initial 48-hour period to deal
with a collapsing bank.

Oct 22, 2014

BoE’s Bailey: too late to revise allowances for 2014 bank bonuses

LONDON, Oct 22 (Reuters) – It is too late to change the
allowances paid to top banking staff that have been deemed to
breach European Union law, a senior Bank of England official
said on Wednesday.

The EU’s banking watchdog, the European Banking Authority
(EBA), said on Oct. 15 that “role based” allowances being paid
by banks were nearly all in breach of the bloc’s cap on banker
bonuses.

Oct 20, 2014

Global regulators to fast-track bank leverage rule

LONDON (Reuters) – Global regulators will fast-track work on finalizing a key benchmark to measure bank capital even as countries begin applying their own higher ratios, a top regulator said on Monday.

The Basel Committee on Banking Supervision was due to finalize the so-called leverage ratio in 2017, a year ahead of when it comes into force.

Oct 20, 2014

Bank of England’s Cunliffe says banks may have to cut pay

LONDON (Reuters) – Banks may have to cut pay because they are unlikely to see again the high rate of returns they enjoyed before the financial crisis, Bank of England Deputy Governor Jon Cunliffe said on Monday.

Returns on equity (RoE) for banks were 20 percent or more in the years before the 2007-09 financial crisis but have tumbled to well below half that level for many lenders as tougher capital requirements bite.

Oct 20, 2014

BoE’s Cunliffe says banks may have to cut pay

LONDON, Oct 20 (Reuters) – Banks may have to cut pay because
they are unlikely to see again the high rate of returns they
enjoyed before the financial crisis, Bank of England Deputy
Governor Jon Cunliffe said on Monday.

Returns on equity (RoE) for banks were 20 percent or more in
the years before the 2007-09 financial crisis but have tumbled
to well below half that level for many lenders as tougher
capital requirements bite.

Oct 20, 2014

Banks to get instruction manual for submitting Libor quotes

LONDON, Oct 20 (Reuters) – Banks who submit quotes for
compiling Libor interest rates will have to follow a manual of
instructions to avoid a repeat of the rigging seen in the past,
the benchmark’s new administrator said on Monday.

Ten banks and brokerages have paid more than $6 billion to
settle allegations of rigging the London Interbank Offered Rate
or Libor, which is used to price $350 trillion of financial
products globally, from credit cards to home loans.

    • 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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