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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.