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Osborne Asks Boe To Consider Extra Powers To Restrain Banks


Ron Burgundy
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Britain's Chancellor of the Exchequer George Osborne speaks at a Thomson Reuters Newsmaker event at Canary Wharf in LondonChancellor George Osborne has asked the Bank of England to consider whether it needs extra powers to restrain banks' risk-taking and accelerate a timeframe for new rules agreed by international financial regulators. The BoE's Financial Policy Committee can already shape the regulation of Britain's financial system. It has powers to force banks to hold more capital but has no direct say over a separate tool for reining in big banks' risk-taking, a so-called leverage ratio. Global regulators, keen to make banks safer after the financial crisis, are focussing on the leverage ratio as a way to prevent banks from taking on too much risk and mitigate any attempts to circumvent the other capital rules.




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