Regulation Correspondent, Europe
Huw's Feed
Mar 6, 2014

Top banks seen meeting capital rules well before deadline

LONDON, March 6 (Reuters) – The world’s top banks have
already added most of the capital they need to meet new solvency
rules in full, five years ahead of a 2019 deadline set by
regulators, global banking supervisors said on Thursday.

Market and regulatory pressure has meant banks moved early
to build up their capital buffers to dispel doubts about their
health, with European banks in particular topping up on capital
to ensure they pass a review of their assets and a stress test
this year.

Mar 5, 2014

BoE’s Haldane says IMF needs more funds

MANCHESTER, England (Reuters) – The International Monetary Fund needs more money to become a better bulwark against financial crises spreading, a senior Bank of England official said on Wednesday.

Andy Haldane, the central bank’s executive director for financial stability, said the Group of 20 leading economies (G20) lamented when they met in Sydney last month that U.S. Congress had still not approved an increase for IMF funds.

Mar 4, 2014

Banks must accept risk weights need fixing: Basel’s Ingves

LONDON (Reuters) – Changes to how banks add up risks on their books to determine capital levels are inevitable and lenders must acknowledge there is a problem to be fixed, a global banking supervisor said on Tuesday.

Stefan Ingves, chairman of the Basel Committee of banking supervisors from nearly 30 countries, said variations in how banks add up risks were “uncomfortably wide” but not all lenders accept there is a problem in the first place.

Mar 4, 2014

BoE’s Cunliffe says EU banks tests must be credible

LONDON, March 4 (Reuters) – European Union stress tests of
more than 100 top banks must be credible and transparent enough
to draw a line under past failures, Bank of England Deputy
Governor Jon Cunliffe said on Tuesday.

As part of efforts to ensure there can be no repeat of the
region’s debt crisis, the EU’s banking watchdog, helped by the
European Central Bank, will test 124 leading banks to make sure
they hold enough capital to withstand rocky markets.

Mar 4, 2014

UK watchdog still sees poor sales practices at some banks

LONDON, March 4 (Reuters) – Some of Britain’s banks are
still offering their staff pay incentives that could trigger
more mis-selling of financial products, the country’s markets
watchdog said on Tuesday.

The Financial Conduct Authority (FCA) said significant
progress had been made in stamping out poor selling practices,
but found around one in 10 of the companies it examined still
had risky sales practices.

Feb 26, 2014

Business leaders cast doubt on Scotland using the pound informally

LONDON, Feb 26 (Reuters) – An independent Scotland’s use of
the British pound without the permission of the rest of the UK
could endanger the stability of the nation’s financial sector,
Scotland’s financial services industry head warned on Wednesday.

Owen Kelly, chief executive of the Scottish Financial
Enterprise, said adopting sterling informally would mean losing
the services of the Bank of England as a backstop and having to
shoulder the cost of setting up a new Scottish regulator.

Feb 26, 2014

UK investors, banks at odds over who to cover clearing house risks

LONDON, Feb 26 (Reuters) – Britain’s race to shield
taxpayers from a potentially new breed of “too big to fail”
financial firms is pitting investors against banks over who pays
the bill if one of the clearing houses handling the trillions of
dollars of trades made each year in financial markets runs into

Investors in the form of pension funds and asset managers
who buy financial assets like derivative instruments which pass
through clearing houses, say they should not have to bail out a
clearer in danger of going bust.

Feb 26, 2014

Britain sets lighter conditions for foreign investment bank branches

LONDON, Feb 26 (Reuters) – Britain’s central bank set
lighter conditions on Wednesday for branches of Chinese and
other non-European investment banks as part of efforts to
bolster London’s role as a financial centre.

The new rules reverse a previous policy of putting pressure
on non-EU lenders operating branches in Britain to become
standalone subsidiaries with their own capital and liquidity
buffers – a costlier undertaking.

Feb 25, 2014

EU watchdog says will take care in fragile bond market

LONDON, Feb 25 (Reuters) – The European Union’s securities
watchdog said it will tread carefully in regulating government
and corporate bonds to avoid crimping liquidity in already
fragile markets that are key to funding economic growth.

Verena Ross, executive director of the European Securities
and Markets Authority (ESMA), said changes to market practices
were inevitable under new EU rules in 2016.

Feb 20, 2014

Estonia kicks off haggling over European transaction tax

TALLINN/LONDON, Feb 20 (Reuters) – Estonia has called for
pension funds to be exempt from a planned tax on transactions in
11 European countries, piling pressure on France and Germany who
want a deal on the levy within weeks.

It aims to recoup taxpayer money given to banks during the
2007-09 financial crisis, and is seen by some politicians as a
vote winner at a time of public anger over bankers’ bonuses and
fines on lenders for rigging interest rates.

    • 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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