BoE may impose capital floors on UK firms – PRA chief

Sam Woods
Sam Woods, Prudential Regulation Authority
Bank of England

The Bank of England may need to intervene in firms’ modelling choices, as large UK mortgage lenders increase risk and cut their internally determined capital requirements, Sam Woods said today (May 24).

The Prudential Regulation Authority chief executive said firms had responded to a “price war” in the mortgage market by moving up the “risk curve” to compensate for squeezed interest margins.

At the same time, large firms using internal models have significantly trimmed the risk weights on

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking 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: