Fresh from the Bank of England — it’s a draft Policy Statement explaining the planned powers for the Financial Policy Committee to give directions setting extra capital requirements for the purposes of financial stability. Click the image for the full doc:
UK banks should cut bonuses and dividends rather than reduce lending to customers as they try to strengthen their balance sheets and cope with falling profits, the Bank of England’s financial policy committee has warned. The committee, which is charged with identifying and tamping down risks to the financial system, urged banks to take “any opportunity” to strengthen capital and liquidity as the eurozone crisis sent shockwaves through the financial system – but not in ways that would constrain lending. More about the BoE’s wishlist on FT Alphaville.
Banks, exchanges and trade repositories should be forced to disclose more timely and comprehensive data because increased transparency would help investors to price risk and discourage contagion panic, a member of the Financial Policy Committee has urged. The FT reports Donald Kohn, an external member of the new UK regulatory body, said banks should report their financial condition at least quarterly, rather than twice a year. They should also be required to provide full information about their credit exposure to other financial institutions and show how they value illiquid assets – two sources of trouble in the 2008 crisis. Read more
Yield, like love, can cause trouble when you search too hard for it.
Paul Fisher, executive director for markets at the Bank of England, on Wednesday gave a speech surveying the current state of financial markets. Read more
1Bernanke weighs in on robot wars; brings Keynes for backup
2Pump up, debase
3Collateral crunch-counting gets sophisticated
4In which the FTSE puts the crisis behind it
5Further reading
Show more6The risk of a Japanese VaR shock
7S&P 2,100, by Goldman Sachs
8A Kazakh muddle
9Apple Operations International, facts (?) du jour
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