Regulation Correspondent, Europe
Huw's Feed
Jan 23, 2015

Global bank watchdog to review rule on zero-risk weighting for sovereign debt

LONDON, Jan 23 (Reuters) – Global banking supervisors are
reviewing a rule that allows banks to hold little or no capital
against risky sovereign debt held on their books.

The so-called zero-risk weighting rule was heavily
criticised during the euro zone debt crisis when several
countries in the single currency area had to be bailed out.

Jan 23, 2015

Bank of England says lenders must do more to shore up cyber defences

LONDON, Jan 23 (Reuters) – Britain’s banks must do more to
protect themselves and the wider financial system from growing
and evolving cyber crime, the Bank of England said on Friday.

Worried by the increasing rate of attacks on banks by
Internet hacks, the BoE surveyed 36 financial firms and banks in
Britain and found no immediate critical shortcomings in their
defences.

Jan 22, 2015

BoE says UK insurer capital won’t rise under EU rules

LONDON, Jan 22 (Reuters) – European Union rules from 2016 to
keep insurance companies stable will not be an excuse for
regulators to ramp up capital requirements for insurers in
Britain, a senior Bank of England official said on Thursday.

The so-called Solvency II rules aim to ensure insurers such
as Britain’s Prudential and Aviva hold enough
capital to honour policyholder commitments even when markets
turn sour.

Jan 21, 2015

EU capital markets plan does not need a super-regulator: official

LONDON (Reuters) – The European Union’s plan to build a capital market union (CMU) will not include a super-regulator for markets in the same way the European Central bank now supervises top euro zone lenders,

a senior EU official said on Wednesday.

The comment will assuage concerns in Britain, the bloc’s biggest securities market, that a push by Brussels for a new, more powerful EU regulator to oversee the City of London financial sector would stoke anti-EU sentiment ahead of a general election in May.

Jan 21, 2015

Bank-style regulation offered as temporary fix for money market funds

LONDON (Reuters) – Bank-style regulation of money market funds (MMFs) has been proposed as a temporary compromise as draft European Union rules for the trillion euro ($1.2 trillion) sector face the prospect of being blocked for a second time by European lawmakers.

The rules proposed by the European Commission in Sept. 2013 aim to increase transparency and stability for MMFs, which are used by companies as an interest-earning cash deposit facility, but they have created deep splits among European Parliament members.

Jan 20, 2015

BoE’s Cunliffe cautiously welcomes EU capital markets plan

LONDON (Reuters) – The European Union’s plans to build a capital markets union (CMU) to increase funding for the economy will take years and needs careful handling, Bank of England Deputy Governor Jon Cunliffe said on Tuesday.

The CMU is the vehicle the EU’s executive European Commission hopes will increase market-based funding for companies and wean the 28-country bloc off its heavy reliance on banks.

Jan 20, 2015

Deep splits among EU lawmakers over shareholder rights reforms

LONDON, Jan 20 (Reuters) – European Union lawmakers are
deeply divided over plans aimed at encouraging more long-term
investment in the bloc’s companies, fuelling uncertainty about
what will be decided and when.

The European Commission has drafted revisions to the EU’s
shareholder rights law in a bid to promote a long-term approach
among investors that would put companies on a more stable
footing.

Jan 20, 2015

UK watchdog says consumers need help to switch cash accounts

LONDON, Jan 20 (Reuters) – Britons get poor value from many
cash savings accounts, finding it hard to switch to rival
providers, the Financial Conduct Authority said in a study on
Tuesday that however stopped short of banning some practices.

It should be made easier for consumers to compare and switch
between accounts in the 700 billion pound ($1 trillion) cash
savings market where just six providers hold roughly two-thirds
of all balances.

Jan 19, 2015

BoE says badly run banks face hefty capital surcharge

LONDON, Jan 19 (Reuters) – Badly run banks in Britain will
be forced to hold substantially more capital until they can show
that internal risks are under control, the Bank of England said
on Monday.

The BoE’s Prudential Regulation Authority (PRA) published a
consultation paper on how it will use powers to require lenders
to hold extra capital to cover risks that are not generally
covered by a bank’s minimum core buffer.

Jan 16, 2015

UK banks tell nine trade groups they should merge

LONDON (Reuters) – Banks told nine trade associations in Britain on Friday they should merge into a single body to strengthen lobbying in Europe and slash membership costs.

A working group of banks that includes HSBC, Barclays and Lloyds said in a consultation paper there are too many trade groups, leading to duplication of lobbying and a lack of strategic direction.

    • 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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