Bank Of England Changes Its Mind On Capital Adequacy For Credit Derivatives

METHODS & REGULATIONS

THE Bank of England has altered its stance on how credit derivatives affect banks' capital adequacy requirements. UK banks have welcomed the change, but some industry observers have criticised it for not going far enough.

The amended regulations could potentially lower a bank's capital adequacy requirements, says Ronit Ghose, markets and regulations analyst at the British Bankers Association (BBA).

The UK's capital adequacy regulations differentiate between banking products and traded products

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