Double leverage, a regulatory tribulation

Last week, the UK Prudential Regulation Authority (PRA) published a consultation paper on group policy and double leverage, in which the PRA wants to limit the risks arising from excessive double leverage. The consultation paper and the associated speech by Sam Woods received some coverage, though the ECM addendum on Non-Performing Loans probably attracted more […]

BOE’s Financial Policy Committee – split on Cocos?

Martin Taylor’s  speech, The fence and the pendulum of last week will probably achieve the same hype-status as Andrew Haldane’s The dog and the frisbee. While the latter is kind of naive in that it is hopeful of bank regulation (albeit less complex preferably), the former is anything but. Moreover, Taylor pulls no punches in lashing […]

BOE Announces its Position on Capital under CRR IV

Last week BOE’s Prudential Regulation Authority presented its Statement on Strengthening capital standards; which provides clarity on bank capital rules after the consultation of August last year. It was about time, given that the new capital rules under CRR IV enter into force in about one month from now. With a 7% CET1 requirement, the BOE presents a […]