Bank of England to Reduce Bank’s Exposure

Bank of England policymakers said on Tuesday they would press ahead quickly with a new curb on banks’ risk exposure based on their leverage, despite industry lobbying against the plan.

Paul Tucker, the central bank’s deputy governor for financial stability, told British lawmakers that the new rule should be introduced now.

Some bankers have complained that demands they build up capital levels runs counter to calls from the government and the Bank of England that they lend more in order to boost the country’s slow economic recovery.

Andrew Bailey, another BoE deputy governor who is in charge of prudential regulation, also said he wanted the rule in place as soon as possible and that BoE staff were looking at plans submitted by banks for how they could implement it.

via Reuters

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