Regulators must pay increasing attention to debt encumbrance, where holders of asset-backed securities or covered bonds have rights to certain pools of collateral, according to Thomas Huertas , alternate chairman of the European Banking Authority.
London’s attempt to maintain its financial muscle while boycotting Europe’s move toward a banking union risks isolating the city from its major trading partners and undermining its status as the world’s top money center.
Bank investors will be able to assess which lenders are over-reliant on debt starting in 2015, under plans from global regulators to curb financial firms’ addiction to borrowing to fuel their activities.
Farm credit banks won exemptions from almost the entire Dodd-Frank financial law, including the new consumer protection agency and the regulatory council overseeing systemic risk. Now the banks are seeking a carve-out for their $47 billion swaps business.
Bank customers who inherit an estate, have an unexpected windfall or sell their home may have deposits temporarily guaranteed for as much as 500,000 pounds ($714,000) under a proposal by the U.K.’s financial regulator.
Banks must face separate exams on liquidity and capital because they can’t be measured in the same stress test, Andrea Enria told lawmakers at a hearing reviewing his appointment as chairman of the European Banking Authority.