LONDON, Oct 9 (Reuters) – The European Commission is
expected to allow the securitisation of more assets such as car
and consumer loans and small business loans as part of a drive
to channel more funds into the flagging European economy,
banking sources said on Thursday.
The new rules, part of a law designed to make banks better
able to withstand shocks, were due to be published, possibly as
soon as Friday, along with another law to keep insurers solvent
which will also encourage more securitisation.
LONDON, Oct 6 (Reuters) – Britain has given its banks three
months to show how they plan to protect their retail customers
from riskier parts of their operations.
The Bank of England is forcing lenders to set up a boundary
around their high street operations in an effort to protect
taxpayers from any repetition of the multi-billion pound
bailouts of investment banking operations that occurred under
the financial crisis.
LONDON, Oct 2 (Reuters) – The Bank of England gave a clean
bill of health to Britain’s flagship mortgage guarantee scheme
on Thursday, sparing the government from potential embarrassment
in the run-up to a national election.
But it asked for new powers to curb risky mortgage borrowing
- including funding for buy-to-let investments for the first
time – and said it would speed up plans to limit how much banks
can lend relative to their capital.
LONDON, Oct 2 (Reuters) – The Bank of England will tell
lenders at the end of this month what their key measure of
insulation against future crises should be, bringing forward a
keenly-awaited announcement from 2015 after draft proposals
worried banks and lawmakers.
Banks are on tenterhooks over the leverage ratio they will
have to meet, with widespread expectation it will be higher than
the 3 percent interim level proposed under a global bank capital
accord known as Basel III.
LONDON, Oct 1 (Reuters) – The Bank of England has eased a
curb on risky mortgages that are large relative to a borrower’s
income, amid signs that Britain’s housing market has begun to
In June, the Bank of England’s Financial Policy Committee
recommended that “as soon as practicable” no more than 15
percent of mortgages should be at, or greater than, 4.5 times a
LONDON (Reuters) – The one minute window for setting a widely used currency market benchmark should be extended to 5 minutes to make it harder to manipulate prices, the Group of Twenty’s (G20) regulatory task force said on Tuesday.
Several banks are being investigated by authorities in Britain, the United States and elsewhere for allegedly manipulating the $5 trillion a day currency market, prompting regulators to map out reforms of market operations.
LONDON (Reuters) – State-backed Royal Bank of Scotland will release 800 million pounds ($1.3 billion) from provisions it had set aside to cover losses on bad loans after an improvement in economic conditions, especially in Ireland.
RBS said on Tuesday it also expected losses from bad loans to be “significantly” lower than its previous guidance of 1 billion pounds this year, helped by improving asset prices.
LONDON, Sept 29 (Reuters) – The European Union is not trying
to weaken the City of London, which will be in pole position to
shape a new EU capital markets union, the bloc’s outgoing
financial services chief said on Monday.
Michel Barnier steps down at the end of October after a
frantic five-year stint during which more than 40 new financial
laws were approved, some of which Britain is challenging in the
EU’s top court.
LONDON, Sept 29 (Reuters) – New European Union rules making
banks and markets safer could be swiftly tweaked to get right
balance between effective regulation and encouraging funding to
the economy, the bloc’s new financial services chief said.
Jonathan Hill, a Briton who is due to start in November,
said his priority after the huge regulatory change following the
2007-09 financial crisis will be to implement, enforce and
evaluate the new rules.
LONDON (Reuters) – Banks face curbs on their ability to downplay how much capital they should hold, as regulators bid to restore investor confidence in the sector, a top global banking watchdog has said.
Stefan Ingves, chairman of the Basel Committee of supervisors from nearly 30 countries, said there will be “floors” on bank capital, one of the most definitive statements so far on major changes to come.