Don't rush leverage ratio clearing fix, warns BoE

David Bailey cautions against a "knee-jerk reaction"

Bank of England
BoE: industry needs a considered response to leverage ratio concerns

Regulators should not respond with "knee-jerk" reactions to industry complaints that the leverage ratio is discouraging banks from offering client clearing, according to a senior Bank of England official.

Banks and other regulators, including the US Commodity Futures Trading Commission (CFTC), have been vocal about their concerns around the impact of the leverage ratio on client clearing businesses. The worry is that the ratio as currently calibrated provides few incentives for banks to enter or

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

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