LONDON, March 31 (Reuters) – European Union plans to ban
banks taking market bets with their own money should be scrapped
to avoid crimping the flow of funds needed for economic
recovery, an EU document showed on Tuesday.
The bloc’s executive European Commission has proposed a
draft law to ban proprietary trading at banks and force lenders
to isolate other forms of risky trading to help keep the
financial system stable.
LONDON, March 30 (Reuters) – The world’s top banks and other
market participants want regulators to rethink plans that would
set a new minimum level of capital requirements even when risks
from high quality loans are low.
Core capital buffers held by banks are determined by
assessing the likelihood of a loan defaulting, but regulators
have questioned such “risk-weighting” calculations after finding
wide variations in capital to cover similar loans.
LONDON (Reuters) – Britain’s seven biggest lenders will have to show they can cope with a global economic slump triggered by a sharp slowdown in China and a crash in the euro zone in this year’s round of stress tests conducted by the Bank of England.
Britain decided to introduce annual stress tests for its banks after the 2007-09 financial crisis which required taxpayers to pump 66 billion pounds ($98 billion) into Royal Bank of Scotland (RBS.L: Quote, Profile, Research, Stock Buzz) and Lloyds Banking Group (LLOY.L: Quote, Profile, Research, Stock Buzz).
LONDON (Reuters) – Bonds based on high-quality loans should benefit from lower capital requirements to kick-start the market in Europe, the Bank of England and European Central Bank (ECB) said on Friday.
The two central banks were responding to plans from the European Union’s executive, the European Commission, to revive the asset-backed securities (ABS) market to improve funding for companies.
LONDON (Reuters) – Britain’s financial regulator broke its own rules by failing to keep markets orderly when it mishandled the announcement of a review into life insurance policies, lawmakers said on Friday.
In a scathing 89-page report, the lawmakers said the Financial Conduct Authority (FCA) should report back in six months on how it has put its house in order.
LONDON, March 27 (Reuters) – Britain’s financial regulator
broke its own rules by failing to keep markets orderly when it
mishandled the announcement of a review into life insurance
policies, lawmakers said on Friday.
In a scathing 89-page report, the lawmakers said the
Financial Conduct Authority (FCA) should report back in six
months on how it has put its house in order.
LONDON, March 26 (Reuters) – The Bank of England said on
Thursday that it planned to quiz British asset managers about
whether they could cope with a flood of investors asking for
their money back in times of market stress.
The central bank said it was concerned that some financial
markets — including those for fixed income assets — may be
less liquid than they looked, but that funds had promised they
could return investors’ money at short notice.
LONDON (Reuters) – The European Union will continue to diverge from global banking regulations where necessary to avoid overburdening smaller lenders, the bloc’s financial services chief said on Thursday.
European commissioner Jonathan Hill, in the job since November, said he would extend his predecessor’s policy of tailoring global banking rules where justified.
LONDON (Reuters) – The success of British reforms to crack down on misconduct at banks will largely hinge on whether regulators elsewhere in the world help implement them, Hong Kong’s top market regulator said.
But getting support from other supervisors may prove difficult as governments switch focus to lifting economic growth, added Ashley Alder, chief executive of Hong Kong’s Securities and Futures Commission.
LONDON, March 25 (Reuters) – Authorities are nowhere near to
fully understanding “shadow banking” as the $75 trillion sector
morphs and grows under the influence of new technology and
regulation, a top markets supervisor said on Wednesday.
Shadow banking refers to the supply of credit outside
traditional banks, such as from private equity investors, money
market funds, insurers, repurchase agreements and securities