Shut the window: EU Parliament tackles leverage loophole

EU banks may have to calculate leverage ratios daily, potentially hitting their repo market share

How would you like your repo market? Shallower but consistent, or deeper but uneven?

The UK and US decided some time ago that they prefer to know their banks are well capitalised on average every working day of the year, rather than just four days a year on quarterly reporting dates. But European Union policymakers have historically fretted that any toughening of capital ratios would lead to lower liquidity and higher trading costs all year round.

The downside of the EU alternative, as Risk

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: