Regulation Correspondent, Europe
Huw's Feed
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.

Oct 16, 2014

Keep calm over bank accountability rules: Bank of England’s Bailey

LONDON (Reuters) – Britain’s banks are over-reacting to rules aimed at making senior officials accountable for breaches in rules or procedures which happen on their watch, a top regulator said on Thursday.

Bank of England (BoE) Deputy Governor Andrew Bailey defended the so-called senior managers regime, aimed at making it easier to bring individual bankers to book when things go wrong.

Oct 16, 2014

Keep calm over bank accountability rules – BoE’s Bailey

LONDON, Oct 16 (Reuters) – Britain’s banks are over-reacting
to rules aimed at making senior officials accountable for
breaches in rules or procedures which happen on their watch, a
top regulator said on Thursday.

Bank of England (BoE) Deputy Governor Andrew Bailey defended
the so-called senior managers regime, aimed at making it easier
to bring individual bankers to book when things go wrong.

Oct 16, 2014

Banks told not to expect seamless global rules

LONDON, Oct 16 (Reuters) – New global rules making the
financial system safer won’t be seamless and could be revised
soon to help economic growth, senior government and regulatory
officials said on Thursday.

Since the financial crisis struck in 2007-8, governments
have agreed to a welter of regulations forcing banks to hold
more capital and trade derivatives more safely.

Oct 15, 2014

EU watchdog says bankers’ role allowances breach bonus rule

LONDON, Oct 15 (Reuters) – The bulk of a new type of
allowance paid to bankers are in breach of the European Union’s
bonus cap and must be changed by the end of the year, the EU
banking watchdog said on Wednesday, raising the prospect that
banks will have to bump up basic pay or risk losing top staff.

The sight of bankers pocketing hefty sums at a time when
many people are hit by pay freezes and high unemployment across
Europe prompted the EU to cap the bonuses of bankers earning
more than 500,000 euros ($630,000).

Oct 14, 2014

EU watchdog attacks allowances paid by banks ahead of bonus cap

LONDON, Oct 14 (Reuters) – Europe’s banking watchdog
criticised lenders’ use of allowances in the face of an
impending cap on bonuses, signalling that top bankers in London
could face a shake-up in their pay contracts.

The European Banking Authority (EBA) is due to publish a
report this week on whether quarterly and monthly allowances
some banks now give top staff to boost their fixed pay are
simply a ploy to blunt the impact of the cap, due to be
introduced next year.

Oct 13, 2014

G20 watchdog toughens up new rule for securities financing

LONDON (Reuters) – Global regulators are making it more expensive for hedge funds and insurance companies to raise money from loaning shares in a bid to curb hitherto unregulated risks in “shadow banking”.

Securities financing are typically short-term money-raising transactions between banks and other financial institutions, involving the lending and borrowing of shares or the use of repurchase agreements or repos.

    • 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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