LONDON, Oct 28 (Reuters) – The Bank of England is expected
to impose on UK banks a tougher leverage ratio, the broadest of
capital requirements, than under proposed global rules, in a
move to reassure investors that lenders can survive the next
financial crisis, banking sources said.
The BoE is at the same time expected to simplify proposals
on varying the new ratio, which specifies the minimum amount of
core capital a bank must hold as a proportion of its total
assets, regardless of how risky or safe its lending policies
LONDON, Oct 27 (Reuters) – Tougher rules may be needed to
stop a repeat of the “outrageous” behaviour that has hit trust
and confidence in financial markets in recent years, Bank of
England Deputy Governor Minouche Shafik said on Monday.
Launching a consultation into commodity, bond and currency
wholesale markets after banks were fined $6 billion for rigging
the benchmark interest rates, Shafik said that more changes may
be needed to stop the “anything goes” attitude of traders
uncovered in recent enforcement cases.
LONDON, Oct 26 (Reuters) – A health check of banks across
the European Union showed that 24 lenders, all from the euro
zone, were too weak to withstand a three-year recession in a
test aimed at drawing a line under the single currency’s area’s
protracted debt crisis.
Italy’s Monte dei Paschi had the biggest capital
hole to fill at 2.1 billion euros even after its money raising
efforts so far this year.
LONDON (Reuters) – Clearing houses may need bigger capital cushions as more and more trading in financial derivatives comes their way, the Bank of England said in a paper on Friday.
BoE Governor Mark Carney has said that regulators must make sure that clearing houses don’t end up becoming the new breed of “too big to fail” financial firms.
LONDON, Oct 24 (Reuters) – Clearing houses may need bigger
capital cushions as more and more trading in financial
derivatives comes their way, the Bank of England said in a
paper on Friday.
BoE Governor Mark Carney has said that regulators must make
sure that clearing houses don’t end up becoming the new breed of
“too big to fail” financial firms.
LONDON, Oct 24 (Reuters) – Britain’s regulator told banks
this week they must use a stricter measure of how they measure
capital under a health check of lenders that will be released on
Sunday, people familiar with the matter said.
The European Banking Authority (EBA) is assessing how 123
European banks would cope under a recession scenario and will
release its findings of their capital strength on a so-called
LONDON, Oct 23 (Reuters) – Global regulators have written
the first global capital rule for insurers, marking a key
milestone in efforts since the 2007-09 financial crisis to
reinforce supervision of the sector.
The aim is to make sure big insurers hold enough capital at
all times to meet commitments to policyholders and withstand the
ups and downs in markets.
LONDON, Oct 23 (Reuters) – Top managers of a failed bank
would be replaced immediately and creditors told within two days
the losses they will bear, the Bank of England said on Thursday
in its blueprint for avoiding taxpayer bailouts in future
This is the first time the British central bank has set out
the steps it would take over an initial 48-hour period to deal
with a collapsing bank.
LONDON, Oct 22 (Reuters) – It is too late to change the
allowances paid to top banking staff that have been deemed to
breach European Union law, a senior Bank of England official
said on Wednesday.
The EU’s banking watchdog, the European Banking Authority
(EBA), said on Oct. 15 that “role based” allowances being paid
by banks were nearly all in breach of the bloc’s cap on banker
LONDON (Reuters) – Global regulators will fast-track work on finalizing a key benchmark to measure bank capital even as countries begin applying their own higher ratios, a top regulator said on Monday.
The Basel Committee on Banking Supervision was due to finalize the so-called leverage ratio in 2017, a year ahead of when it comes into force.