Regulation Correspondent, Europe
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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.

Oct 13, 2014

EU looks to U.S. for solution to stalemate in reform of money market funds

LONDON (Reuters) – European Union lawmakers will study new U.S. rules to help them to end a year-long deadlock over how to regulate the bloc’s 1 trillion euro ($1.3 trillion) money market funds (MMF) sector.

MMFs are used by companies to park cash and earn a moderate return, and by banks to manage short-term cashflow.

Oct 13, 2014

EU watchdog to publish report on banker allowances

LONDON (Reuters) – Top bankers in London and elsewhere in the European Union find out in coming days if their pay contracts may be torn up to stop their attempts at softening the bloc’s cap on bonuses.

The European Banking Authority (EBA), an EU watchdog, is due to publish a report on whether so-called monthly or quarterly “allowances” some banks now give top staff to boost their pay, are simply a ploy to blunt the cap’s impact.

Oct 11, 2014

Banks accept derivatives rule change to end ‘too big to fail’ scenario

LONDON (Reuters) – The $700 trillion financial derivatives industry has agreed to a fundamental rule change from January to help regulators to wind down failed banks without destabilising markets.

The International Swaps and Derivatives Association (ISDA) and 18 major banks that dominate the market will now allow financial watchdogs to apply temporary stays to prevent a rush to close derivatives contracts if a bank runs into trouble, the ISDA said on Saturday.

Oct 10, 2014

European banks’ health check results due on October 26

FRANKFURT/LONDON (Reuters) – The results of Europe’s most comprehensive review of banks’ health will be released on Oct. 26, the European Central Bank and the European Banking Authority said on Friday, which will give the clearest picture yet of the state of the sector.

The ECB hopes the tests will banish fears about the health of European banks, which were pummeled during the financial crisis, and restore investor trust and revive lending to euro zone households and companies – a key to getting economic recovery back on track.

Oct 10, 2014

EU rules seek to aid securitisation revival

LONDON, Oct 10 (Reuters) – The European Commission published
new rules on Friday to encourage more securitisation of assets
such as car and consumer loans and small business loans as part
of a drive to channel more funds into the flagging European

The new rules form part of laws designed to make banks
better able to withstand shocks, and to keep insurers solvent.

Oct 9, 2014

EU to revive securitisation to channel more funds to companies

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.

Oct 6, 2014

UK banks have three months to detail protection for high street clients

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.

Oct 2, 2014

Bank of England backs flagship government mortgage guarantee scheme

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.

Oct 2, 2014

Bank of England to unveil bank leverage ratio plans this month

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.

    • 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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