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BOE Sets 4.05% Bank Leverage Rule in Push to Ensure Stability
Britain’s biggest banks will be hit with a basic leverage ratio of just over 4 percent as regulators push on with plans to strengthen the financial system from shocks. Lenders must meet a minimum level of 4.05 percent from 2019, rising to 4.95 percent depending on an additional countercyclical buffer intended to cool excess credit or balance-sheet growth. The Bank of England made the proposals today and Governor Mark Carney said the new framework “protects and improves financial stability.” Global regulators turned to leverage ratios, the minimum of core capital banks must hold without weighting loans for ... (full story)