LONDON (Reuters) – Global regulators set out their “final tools” on Monday for ending the phenomenon of “too big to fail” banks, seeking to draw a line under a period of intensive rule making after a financial crisis that tarnished the sector and weighed heavily on taxpayers.
Mark Carney, chairman of the Financial Stability Board (FSB), which coordinates regulation across the Group of 20 economies (G20) to plug gaps highlighted by the 2007-09 financial crisis, said many of the key reforms have been implemented decisively and promptly.
LONDON (Reuters) – Even as world leaders prepare to endorse new banking rules to draw a line under the financial crisis, many bankers see no end in sight to the painful demands on an industry that became the focus of public and political anger.
More than six years after the 2008-09 crisis, the Group of 20 economies is this month set to approve the last major piece of regulation designed to avoid a repeat of the bank collapses that led to massive taxpayer bailouts in the United States and Europe.
LONDON (Reuters) – This year’s stress tests of Britain’s major banks will not become an excuse for regulators to ratchet up capital requirements without justification, a senior Bank of England official said on Friday.
The annual stress tests are designed to check banks have enough reserves to cope with future financial shocks so they will not need to be rescued using taxpayers money.
LONDON/BRUSSELS, Oct 30 (Reuters) – European Union lawmakers
have ended a stalemate over plans to curb risky trading at banks
after months of wrangling over how tough the new rules should
The draft rules are seen as Europe’s answer to the Volcker
Rule on Wall Street to stop risks from trading pulling down
other parts of a bank, such as customer deposits.
LONDON, Oct 30 (Reuters) – This year’s stress tests of
Britain’s top banks won’t become an excuse for regulators to
ratchet up capital requirements without justification, a senior
Bank of England official said on Friday.
Alex Brazier, executive director for financial stability
strategy and a member of the BoE’s Financial Policy Committee
risk watchdog, said the central bank was mindful of how setting
capital requirements has real economic consequences.
LONDON/FRANKFURT, Oct 29 (Reuters) – A British exit from the
European Union would be bad news for the bloc and for London,
Andreas Dombret, executive board member of Germany’s Bundesbank,
said on Thursday.
Britain is due to hold a referendum by the end of 2017 on
whether to leave or stay in the EU and Dombret said a “Brexit”
would have “severe consequences” for both sides.
LONDON, Oct 29 (Reuters) – Financial transactions using
shares or other assets to secure credit will come under greater
scrutiny after the European Parliament approved a new law on
Thursday to shine a light on the so-called shadow banking
Shadow banking refers to the creation of billions of euros
of credit outside mainstream banking by allowing asset managers,
pension funds and others to access secured funding by
temporarily lending out assets like shares.
LONDON, Oct 27 (Reuters) – The biggest tests for already
weakened market liquidity may lie ahead amid “tectonic shifts”
in money flow, though the Bank of England would intervene if
volatility threatened financial stability, BoE Deputy Governor
Minouche Shafik, said on Tuesday.
Shafik said bouts of extreme volatility in Chinese shares,
U.S. Treasuries and Swiss franc raised concerns among central
bankers that markets could be destabilised if selling became
LONDON, Oct 22 (Reuters) – The Bank of England will help new
lenders cut how much capital they have to set aside to cover
defaulting mortgages so they can compete better with their
bigger rivals, a top BoE official announced on Thursday.
Britain’s government is keen to increase competition in
banking, a sector where just four lenders, HSBC, Lloyds, RBS and
Barclays make up 77 percent of high street accounts and dominate
LONDON, Oct 22 (Reuters) – Bank regulators need to break out
of a loop where rules are tightened up after a crisis and
relaxed too much when times are good, the boss of Britain’s
financial watchdog said on Thursday.
Tracey McDermott, acting chief executive of the Financial
Conduct Authority (FCA), said the finance industry was starting
to see some light at the end of the tunnel after facing a wave
of new regulations since the 2007-09 financial crisis.