LONDON (Reuters) – Global regulators will make it easier for lenders to feed credit to the economy by relaxing a new rule on Sunday designed to limit risk on banks balance sheets, regulatory and banking industry sources said.
The rule is among the final elements of a global accord on bank capital, known as Basel III, which forms the world’s core regulatory response to the 2007-09 financial crisis that saw undercapitalized lenders being rescued by taxpayers.
LONDON, Jan 9 (Reuters) – Banks were pleased this week by
news that Europe would impose less-restrictive rules on trading
than the United States, but the announcement proves that global
regulations are likely to remain inconsistent despite pledges to
At the height of the financial crisis in 2009, world leaders
pledged at a G20 summit to coordinate rulemaking. But with a
torrent of regulation since then, countries have adopted their
own approaches from caps on bankers’ bonuses to capital rules.
LONDON (Reuters) – Britain’s financial watchdog said it had no regrets about approving the appointment of Paul Flowers to chair the Co-operative Bank in 2010.
Last year the bank fell under control of investors, including U.S. hedge funds, after a 1.5 billion pound capital shortfall was exposed.
LONDON, Jan 7 (Reuters) – Britain’s financial watchdog said
it had no regrets about approving the appointment of Paul
Flowers to chair the Co-operative Bank in 2010.
Last year the bank fell under control of investors,
including U.S. hedge funds, after a 1.5 billion pound ($2.5
billion) capital shortfall was exposed.
LONDON, Jan 6 (Reuters) – Banks in the European Union face
limits on taking market bets with their own money under a draft
EU proposal that represents a central plank of attempts to
prevent a repeat of the financial crisis of 2007 to 2009.
Policymakers want to rein in excessive trading risks in the
EU banking sector, whose assets total some 43 trillion euros
($59 trillion), that could threaten depositors if trades go
wrong and potentially put taxpayers on the hook in a rescue.
LONDON, Dec 20 (Reuters) – “What a week”, tweeted European
Union financial services chief Michel Barnier on Thursday after
securing an agreement on how to wind up failed banks without
making the region’s taxpayers foot the bill.
The deal, hammered out after months of characteristic
wrangling, brings Europe a step closer to the banking union seen
as vital to avoid another contagious financial crisis and offers
some Christmas cheer to policymakers needing some victories to
present to recession-weary electorates.
LONDON, Dec 20 (Reuters) – The European Union’s top banks
hold on average bigger cash-like buffers than required though
some specialised lenders should get some leeway, the bloc’s
banking watchdog said on Friday.
Banks will have to hold a so-called liquidity buffer made up
of top quality assets akin to cash, such as government bonds,
that can be sold easily so that lenders can withstand short-term
shocks unaided by taxpayers.
LONDON, Dec 20 (Reuters) – European Union rules agreed this
week to increase competition in accounting are already being
felt two years before they take effect, accountants Grant
Thornton International said.
The EU’s new law from 2016 will force 35,000 companies
across the 28-country bloc to switch accountants about every ten
years to avoid overly cosy-relationships.
LONDON, Dec 19 (Reuters) – Britain’s accounting watchdog has
fined EY 750,000 pounds ($1.2 million) for failing to meet
required standards in its auditing of Christmas savings club
Farepak Food and Gifts, which ceased trading in 2006 owing money
to over 100,000 customers.
The Financial Reporting Council (FRC) also formally
reprimanded EY and ordered it to pay 425,000 pounds in costs.
LONDON, Dec 19 (Reuters) – Global regulators have softened
proposed new rules for securitisation in a bid to help to kick
start a financing method tarnished by the financial crisis.
Central bankers and policymakers see securitisation, or
packaging loans into bonds, as an important source of funding
for the wider economy.