Regulation may force banks out of repo, says NY Fed

Banks will "revisit their presence" due to liquidity and leverage charges

jeanmarie-davis
Jeanmarie Davis, Federal Reserve Bank of New York

Banks may consider pulling out of the repurchase agreement and securities lending businesses completely as new liquidity and leverage rules start to bite, according to the Federal Reserve Bank of New York.

"All the capital and liquidity requirements that will affect that book of business are still in development, but certainly we do realise that there will be capital and liquidity charges against these businesses. You can definitely anticipate that all firms will revisit their presence in this

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: