Regulation Correspondent, Europe
Huw's Feed
Sep 2, 2013

FSB’s Carney warns G20 of risk of fragmented banking rules

LONDON, Sept 2 (Reuters) – The world’s banking system risks
fragmentation that could hurt growth if countries cannot settle
their differences over how to handle big banks that run into
trouble, a top policymaker said on Monday.

Mark Carney, chairman of the Financial Stability Board
(FSB), is due to report to leaders of the G20 group of economies
this week on the slow progress so far in tackling the last of
the big post-crisis reforms: making sure banks are not too big
to fail.

Sep 2, 2013

Regulators ease derivatives rule to avoid harming economy

LONDON (Reuters) – Global regulators have eased the impact of new rules designed to make the $630 trillion derivatives market safer as they seek to avoid too-tight controls on the sector that some banks argue could harm economic recovery.

The Basel Committee of regulators and central bankers published their final rule for requiring banks and brokerages to post an initial margin on trades in derivatives known as swaps, if those trades don’t pass through a “clearing house” which in itself generates a backup if one party to the trade goes bust.

Aug 29, 2013

Shadow banks face 2015 deadline to comply with first global rules

LONDON, Aug 29 (Reuters) – The $60 trillion “shadow banking”
sector has been given until 2015 to comply fully with its first
set of global rules after an international regulatory task force
unveiled plans to curb risk without strangling economic
recovery.

Leaders of the group of 20 economies (G20) meet in Russia
next week to endorse the rules written by their Financial
Stability Board (FSB), setting out requirements for the sector
and how it must be supervised. Checks on compliance will start
in two years’ time.

Aug 29, 2013

EU to consider capital charges on shadow banks: document

LONDON (Reuters) – The European Union may apply its mandatory capital rules for banks to a wider set of institutions to cover risks in “dark corners” of the financial system, an EU draft document said.

The document has been written by the bloc’s European Commission and is due to be published next Wednesday.

Aug 28, 2013

UK banks allowed to cut their cash holdings

LONDON, Aug 28 (Reuters) – Britain’s eight top lenders can
cut their cash reserves by a collective 90 billion pounds ($140
billion) and use the funds to support economic growth, the Bank
of England’s new governor Mark Carney said on Wednesday.

Britain’s lenders were forced to build up buffers of cash
and UK government bonds far earlier than required under a
globally-agreed timetable.

Aug 27, 2013

G20 body says U.S. could improve financial risk spotting

LONDON (Reuters) – The United States could improve how it spots and prevents risks in the financial system from turning into destabilizing crises, a global regulatory task force said on Tuesday.

The Financial Stability Board (FSB) said the world’s top insurance market could also streamline supervision of the sector by centralizing powers currently held at state level.

Aug 25, 2013

World leaders to put shadow banks on long leash

LONDON, Aug 25 (Reuters) – World leaders are expected to
take a softly-softly approach to regulating the so-called shadow
banking sector when they meet in Russia next month to avoid
damaging the flow of finance to the global economy.

While governments have cracked down on risk-taking by
traditional banks in the wake of the financial crisis, the
shadow banking sector, an assortment of financial intermediaries
that handle $60 trillion of transactions a year – roughly the
same size as the world economy – remains a source of systemic
risk for taxpayers.

Aug 22, 2013

UK banks agree to pay for latest mis-selling scandal

LONDON, Aug 22 (Reuters) – British insurer CPP and
13 high street banks and credit card issuers will pay up to 1.3
billion pounds ($2 billion) to millions of customers who were
mis-sold CPP credit card insurance policies.

The announcement by the Financial Conduct Authority (FCA) on
Thursday heaps further embarrassment on British banks after a
string of mis-selling scandals and huge compensation payments
partly responsible for them having to increase their cash
buffers.

Aug 20, 2013

Regulators tighten leash on mortgage insurers

LONDON (Reuters) – Global regulators have toughened up standards for insuring home loans after defaults in U.S. mortgages sparked a global financial crisis and an industry shakeout six years on.

Some insurers have filed lawsuits against banks, accusing them of falsely representing the quality of loans they were asked to insure.

Aug 2, 2013

Investment banks in UK face capital shortfall: central bank

LONDON, Aug 2 (Reuters) – Foreign investment banks in
Britain face a shortfall of up to 29 billion pounds to meet new
EU capital rules aimed at shielding taxpayers from having to
rescue banks again, the Bank of England said on Friday.

The rules implement new global standards known as Basel III
in the 28-country bloc, forcing banks to roughly triple the
amount of capital they must hold compared with before the
2007/09 financial crisis when several banks were bailed out.

    • 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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