U.K. Banks Bracing for Tougher Leverage Ratio Than Europe
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U.K. banks are bracing themselves for tougher debt-financing limits than their European competitors as executives warn that higher leverage ratios will lead to more expensive loans for homeowners.
The Bank of England is poised to join the U.S. in hitting banks with a leverage ratio that is seen exceeding the current global minimum of 3 percent mandated by the Basel Committee on Banking Supervision. The BOE, which took over U.K. banking regulation in 2013, will announce the outcome of a consultation tomorrow at 2 p.m. in London.