Banks Ask for UK Treasury Bill Exemption From Leverage Rules

Banks are asking British officials to exempt the UK’s Treasury bills from a key regulatory capital metric to help the nation expand the market.

Excluding the ultra short-dated debt from the so-called leverage ratio — which requires lenders to have a set amount of capital relative to total assets — would make such securities more attractive for banks, according to UK Finance, a trade body representing more than 300 firms in the sector.