Regulation Correspondent, Europe
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Dec 3, 2013

Global regulators expected to ease banking leverage rule: source

LONDON (Reuters) – Global banking regulators are expected to ease a new capital rule due in 2018 to rein in risky balance sheets after U.S. complaints, a European regulatory source said on Tuesday.

The Basel Committee on Banking Supervision published a proposal in June to flesh out a leverage ratio that banks will have to introduce in January 2018.

Dec 3, 2013

Accounting body says loan rule for banks ready in January

LONDON, Dec 3 (Reuters) – An accounting rule forcing banks
to set aside capital far earlier for troubled loans will be
completed next month and start in 2017, a global standard setter
said on Tuesday.

Leaders of 20 major economies (G20) called for the new rule
in 2008 at the height of the financial crisis when taxpayers had
to bail out undercapitalised banks.

Dec 2, 2013

EU watchdog sees failings in sovereign debt ratings process

LONDON (Reuters) – The “Big Three” credit rating agencies that score European Union government debt could be fined after failing to fix poor practices from the past, the sector’s regulator said on Monday.

Credit ratings are a key part of the financial system because investors use them to judge how likely they are to get their money back. But the financial crisis led to unease that the market is relying on them too much.

Nov 29, 2013

UK watchdog eases capital rules for pension risks

LONDON (Reuters) – Britain’s banking regulator has relaxed a new rule determining the quality of assets banks must hold to cover risks from pension liabilities.

The Bank of England’s Prudential Regulation Authority (PRA) had proposed that all the extra capital which comes on top of mandatory minimum buffers, should eventually be in the most expensive form, such as shares or retained earnings.

Nov 29, 2013

Accountant BDO sees mergers in the sector speeding up

LONDON, Nov 29 (Reuters) – Global accountant BDO predicts
rapid consolidation in the sector due to pressure on fees,
regulatory change and big investment costs, that will leave only
a couple of mid-sized firms.

“Within the next five years, we anticipate that the global
consolidation of our profession will gather pace, leaving only
two or three substantial mid-tier networks globally,” BDO Chief
Executive Martin van Roekel told Reuters.

Nov 28, 2013

Bank of England to take fresh look at securitisation market

LONDON, Nov 28 (Reuters) – The Bank of England said it may
step in to kickstart the securitisation market, which was
discredited by the U.S. subprime crisis but is now seen as a
valuable option for financing business growth.

Securitisation, where banks bundle pools of loans and sell
the resulting package to raise funds for lending, has tumbled in
Europe from $1.2 trillion in 2008 to $322 billion last year.

Nov 28, 2013

Bank of England cuts mortgage support to avoid housing bubble

LONDON, Nov 28 (Reuters) – The Bank of England moved to head
off the risk of a bubble in house prices on Thursday, making a
surprise announcement that it would put the brakes on a scheme
launched last year to boost mortgage lending.

Shares in British construction firms tumbled after the
central bank said it would refocus the Funding for Lending
Scheme (FLS) on helping small firms that find it hard to borrow.

Nov 28, 2013

Bank of England unexpectedly reins in plan to boost mortgage lending

LONDON (Reuters) – The Bank of England moved to head off the risk of a bubble in house prices on Thursday, making a surprise announcement that it would heavily scale back a scheme launched last year to boost mortgage lending.

Britain’s economy and its housing market have staged an unexpectedly strong turnaround since the BoE launched the Funding for Lending Scheme (FLS) with the finance ministry in July 2012 to help increase lending to home-buyers and businesses.

Nov 28, 2013

Bank of England scales back scheme to boost mortgage lending

LONDON (Reuters) – The Bank of England said on Thursday that it would heavily scale back a scheme launched last year to boost mortgage lending, as house price inflation looks set to accelerate further.

Britain’s economy has staged an unexpected turnaround since the BoE launched the Funding for Lending Scheme with Britain’s finance ministry in July 2012 to help increase lending to home-buyers and businesses.

Nov 27, 2013

UK must up game to defend itself within EU: adviser

LONDON (Reuters) – Britain needs a clearer strategy to prevent new European Union rules from harming the powerhouse of its economy, the City of London financial district, a top adviser to the capital’s mayor told lawmakers on Wednesday.

Gerard Lyons, chief economic adviser to London Mayor Boris Johnson, told parliament’s Treasury Select Committee that Britain was good tactically in firefighting problems related to the EU, but less good strategically.

    • 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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