BOE mulls bank leverage ratio rules to curb window dressing
London
THE UK Prudential Regulation Authority (PRA) proposed requiring banks to report their leverage ratios daily in a bid to prevent them from gaming new rules intended to bolster financial stability.
Allowing lenders to report less frequently may tempt them to tweak their balance sheets around the reporting date, a process known as "window dressing", creating a false impression of the risks that they are carrying. Off-balance-sheet risks will be reported as a monthly average, and firms will be able to use best estimates, the London-based PRA proposed.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Nomura, Mizuho face losses on All Blue fund’s failed trades
Stablecoin Tether steps up monitoring in bid to combat illicit finance
HSBC asked by US$890 billion investor group to set energy goal
Barclays is the latest firm to face anti-ESG wrath in Oklahoma
Barclays prices mortgage-backed notes in deal with GoldenTree
TD risks an earnings hit from US laundering probe, analysts say