Regulation Correspondent, Europe
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Jun 20, 2013

Watchdog says Lloyds must raise 8.6 billion pounds capital

LONDON (Reuters) – Lloyds Banking Group must plug a capital shortfall of 8.6 billion pounds, Britain’s banking regulator said on Thursday, a day after the government signalled plans to return the part-state owned lender to the private sector.

Britain is trying to restore confidence in a banking sector that had to be shored up by taxpayers during the 2007-09 financial crisis. Apart from the large minority stake in Lloyds, it also owns 81 percent of Royal Bank of Scotland (RBS.L: Quote, Profile, Research).

Jun 20, 2013

UK watchdog says Lloyds must raise $13.5 bln capital

LONDON, June 20 (Reuters) – Lloyds Banking Group
must plug a capital shortfall of 8.6 billion pounds ($13.5
billion), Britain’s banking regulator said on Thursday, a day
after the government signalled plans to return the part-state
owned lender to the private sector.

Britain is trying to restore confidence in a banking sector
that had to be shored up by taxpayers during the 2007-09
financial crisis. Apart from the large minority stake in Lloyds,
it also owns 81 percent of Royal Bank of Scotland.

Jun 19, 2013

New bookkeeping rule to prise open insurers’ “black box” accounts

LONDON (Reuters) – An international bookkeeping regime being unveiled on Thursday will iron out national variants in insurers’ “black box” balance sheets although the transition will take several years and the United States will keep its own, very different rules.

The International Accounting Standards Board’s (IASB) third try at a new rule will be unchanged from the previous draft: each reporting period insurers must update policy values based on prevailing market conditions rather than at historic cost.

Jun 19, 2013

New bookkeeping rule to priprizese open insurers’ ‘black box’ accounts

LONDON (Reuters) – An international bookkeeping regime being unveiled on Thursday will iron out national variants in insurers’ “black box” balance sheets although the transition will take several years and the United States will keep its own, very different rules.

The International Accounting Standards Board’s (IASB) third try at a new rule will be unchanged from the previous draft: each reporting period insurers must update policy values based on prevailing market conditions rather than at historic cost.

Jun 19, 2013

FRC bans internal, external auditor links

LONDON (Reuters) – A British watchdog has banned accountants from asking customers’ internal auditors directly for help in checking the books in a bid to bolster their independence.

The Financial Reporting Council, which polices accountants and auditors, said on Wednesday the ban creates a clearer division of responsibility between internal and external audit.

Jun 19, 2013

UK watchdog bans internal, external auditor links

LONDON, June 19 (Reuters) – A British watchdog has banned
accountants from asking customers’ internal auditors directly
for help in checking the books in a bid to bolster their
independence.

The Financial Reporting Council, which polices accountants
and auditors, said on Wednesday the ban creates a clearer
division of responsibility between internal and external audit.

Jun 18, 2013

U.S. regulators see no need for enhanced insurer capital

LONDON, June 18 (Reuters) – Insurers should not be
forced to hold extra capital just because of their size, because
the extra cost would simply be passed on to consumers, U.S.
regulators said on Tuesday.

G20 world leaders have backed imposing extra capital
requirements on the 30 or so biggest banks from 2016 to avoid a
repeat of taxpayer bailouts seen during the financial crisis.

Jun 17, 2013

Insurers, regulators at odds on bid to break capital rule deadlock

FRANKFURT/LONDON (Reuters) – European insurance regulators remained at odds with the industry on Monday after proposals last week on how to supervise the long-term risks associated with life insurance products offering lengthy guarantees.

Proposals to regulate such products, which echo efforts to boost the banking sector’s capital ratios, have been a bone of contention for months, because many in the industry argue they incorrectly assume insurers will always be affected by short-term market volatility.

Jun 17, 2013

Britain wins safeguard in EU market rules deal

LONDON, June 17 (Reuters) – Britain won backing from its
European Union partners on Monday to prevent parts of its
financial services sector potentially having to relocate to the
euro zone.

Britain is already taking the European Central Bank to the
bloc’s highest court for its policy of requiring clearing houses
which help process a significant amount of euro-denominated
transactions to be based in the single currency area.

Jun 17, 2013

Regulators to set post-crisis rules for capping bank risk-taking

LONDON (Reuters) – Regulators decide this week how banks should set a limit to the risk they take onto their balance sheets, with investors likely to pressure lenders to comply before formal implementation in 2018.

Banks will be forced to hold more capital and cash as part of the world’s main regulatory response to the financial crisis, 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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