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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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza