The trade body for banks will tell the UK’s Financial Services Authority on Monday that proposed changes to capital and liquidity requirements do not “strike the right balance”. The British Bankers’ Association calls in a letter to FSA chief Hector Sants for an urgent assessment of costs of complying with the new rules. In the letter, Angela Knight, BBA chief,  says that forcing banks to hold more capital, and a higher proportion of funding in liquid form, will constrain balance sheets as banks are urged to lend more.

This entry was posted by Gwen Robinson on Monday, June 15th, 2009 at 4:53 and is filed under Capital markets, People. Tagged with BBA, fsa. Edit this entry.