Leverage ratios
Danish paper explores prevalence of interest-only mortgages
Interest-only loans lead some families ‘to save less and increase their leverage’ assets, which could pose a financial stability risk, research shows
BoE’s Miles cautions against use of policy rate for financial stability ends
Use of monetary policy to tackle financial stability goals is less efficient than setting higher capital requirements, outgoing MPC member says
Kuwaiti banks perform well under stress, report shows
Banks in Kuwait showed resilience during stress tests and strengthened their balance sheets in 2014, financial stability report shows; conventional banks more cost-efficient than Islamic
New Zealand paper calls for clearer financial stability aims
Researchers argue more guidance is needed on how and when macro-prudential policy will be used, pointing to the lack of hierarchy between distortions
Philippines 5% leverage ratio causes few ripples
Central Bank of the Philippines brings in one of the highest basic leverage ratios globally, but local firms are unconcerned
Leverage ratio begins to bite for FX derivatives
The capital-intensive rule for banks, which has already affected the rates and credit world, is starting to hit FX - with clients expected to bear the brunt of higher costs
Finma's Branson calls for Basel leverage ratio hike
The minimum Basel leverage ratio for large banks should be higher than 3%, says Finma CEO Mark Branson, noting "the world has moved on" since it was initially set
BIS research posits test for unsustainable credit growth
Authors link long-run credit growth with leverage and debt service ratio, proposing a model they claim would have helped predict the 2008 financial crisis three years before it struck
Basel Committee signals shift towards Basel III implementation
With Basel III standards largely finalised, the Basel Committee’s 2015-16 work programme indicates focus on implementation and efforts to shore up confidence in capital ratios
Sweden's central bank and macro-prudential regulator clash over leverage ratio
Riksbank calls for stricter and earlier implementation of Basel III measure a day after Financial Supervisory Authority rejects proposals
BoE’s Taylor defends complexity of leverage ratio plans
External FPC member says countercyclical leverage ratio may be more complex than a flat rate, but allows the Bank of England to be less heavy-handed with the rule and avoid perverse incentives
BIS paper finds leverage ratio more countercyclical than other capital ratios
Working paper finds evidence the leverage ratio is ‘significantly’ more countercyclical than ratios of capital to risk-weighted assets, although the effect is less powerful during crises
Bank of England proposes three-pronged leverage ratio
Financial Policy Committee recommends ‘supplementary leverage ratios' for UK's biggest banks and wants power to set them from 2016
BoE’s Cunliffe says leverage ratio is no mere ‘backstop'
Bank of England deputy governor says leverage and risk-weighted capital ratios serve different purposes; term ‘shadow banking’ casts a pall over productive aspects of non-bank financial services
Financial Policy Committee angles for full powers over UK leverage ratio regime
Bank of England body poised to ask for lead role in design and implementation of leverage ratios in UK; move described as a natural fit
IMF's Singh discusses ‘financial plumbing' issues as central banks leave ZLB
IMF's Manmohan Singh investigates issues around bank balance sheet regulations which may impact monetary policy options as central banks leave the zero lower bound
BoE paper emphasises uncertainty over risk to argue for simpler regulation
Misguided ‘quest for ever-greater precision' in bank regulation is creating ‘ever-lengthening regulatory rulebooks' that are hard to communicate and bad at predicting outcomes
Fed bars BofA from raising dividends after flawed capital submission
Federal Reserve orders Bank of America to resubmit capital plan after bank discovers inaccuracies dating back to Merrill Lynch takeover that caused miscalculation of capital ratios
Fed finalises strict leverage ratio requirements for biggest banks
The Federal Reserve has finalised rule that will require systemically important banks to maintain leverage ratios of at least 5% from 2018
Ingves: Basel Committee still has ‘quite a bit of work to do’ on leverage ratio
Stefan Ingves tells banking supervisors in Asia-Pacific there is plenty of work left to do before the Basel Committee will be able to settle on the final calibration of the leverage ratio
Risk discrimination 'essential', argues Bank of Spain deputy
Fernando Restoy rebuffs 'excessively simplistic approaches that prevent capital requirements being adapted to each bank's business model'
Simple indicators better for regulators, BoE economist argues
The experience of the 2008 crisis shows leverage ratios are better warning signs than more complex measures like capital ratios
IMF warns recapitalisation of Slovenian banks is a 'stop-gap solution'
Report urges deeper reforms of under-capitalised corporate and banking sectors; says ECB comprehensive risk assessment expected later this year could expose additional capital shortfalls
Basel Committee publishes leverage ratio definition
Basel Committee agrees common definition for simple bank leverage ratio; discussions set to continue over the appropriate required level