LONDON, March 26 (Reuters) – The Bank of England said on
Thursday that it planned to quiz British asset managers about
whether they could cope with a flood of investors asking for
their money back in times of market stress.
The central bank said it was concerned that some financial
markets — including those for fixed income assets — may be
less liquid than they looked, but that funds had promised they
could return investors’ money at short notice.
LONDON (Reuters) – The European Union will continue to diverge from global banking regulations where necessary to avoid overburdening smaller lenders, the bloc’s financial services chief said on Thursday.
European commissioner Jonathan Hill, in the job since November, said he would extend his predecessor’s policy of tailoring global banking rules where justified.
LONDON (Reuters) – The success of British reforms to crack down on misconduct at banks will largely hinge on whether regulators elsewhere in the world help implement them, Hong Kong’s top market regulator said.
But getting support from other supervisors may prove difficult as governments switch focus to lifting economic growth, added Ashley Alder, chief executive of Hong Kong’s Securities and Futures Commission.
LONDON, March 25 (Reuters) – Authorities are nowhere near to
fully understanding “shadow banking” as the $75 trillion sector
morphs and grows under the influence of new technology and
regulation, a top markets supervisor said on Wednesday.
Shadow banking refers to the supply of credit outside
traditional banks, such as from private equity investors, money
market funds, insurers, repurchase agreements and securities
LONDON, March 25 (Reuters) – Cyber crime is probably the
biggest risk facing companies across the world, and they need to
do more to help governments tackle the problem, U.S. Deputy
Treasury Secretary Sarah Bloom Raskin said on Wednesday.
“Each of us must recognise this risk is perhaps the most
pressing operational risk of our time,” she told the CityWeek
conference in London.
LONDON (Reuters) – New rules being rolled out to make bankers more accountable were “entirely reasonable” given the pain Britain suffered in the financial crisis, HSBC Chairman Douglas Flint said on Tuesday.
The new “senior managers’ regime” will make top bankers directly accountable for rule breaches on their patch from 2016, but it has been criticized by some bankers and financial lawyers for going too far and hard to apply in practice.
LONDON (Reuters) – Unless investors start believing that U.S. interest rates are on the way up there could be a potentially extreme market reaction when they actually do rise, Federal Reserve policymaker James Bullard said on Tuesday.
Bullard said a first rate hike “sometime in the summer” would still leave monetary policy extremely accommodative, and that market expectations should be better aligned with those of the Fed considering the current “boom time” for the U.S. economy.
LONDON, March 24 (Reuters) – Leaving the European Union
would be disastrous for Britain and harm its economy, Standard
Life Chairman Gerry Grimstone said on Tuesday.
“It would be disastrous for London and the UK if the UK were
to leave the single market,” Grimstone told a conference on how
to maintain Britain’s competitiveness as a financial centre.
Standard Life is Britain’s fourth-biggest insurance company.
LONDON (Reuters) – Britain’s newest and most powerful financial regulator has pledged to introduce “meaningful” change this year to help new banks steal market share from the “Big Five” lenders who dominate in commercial and retail banking.
The Payment Systems Regulator (PSR) will be formally launched on April 1 and was specifically created to shake up the arcane financial plumbing that handles 75 trillion pounds ($110 trillion) of money transfers annually, from credit cards to shop payments and cash machines.
LONDON (Reuters) – The Bank of England told markets on Friday to “take heed” as the “short sharp shocks” seen in markets over recent months could happen more frequently.
Chris Salmon, the Bank’s executive director for markets, said two incidents have highlighted how volatility can suddenly increase and liquidity drop.