George Osborne and Mark Carney press EU over bank regulation

George Osborne and Mark Carney press EU over bank regulation

The Bank of England Governor and the Chancellor, who met last month, said it was “very important” that European and American officials came up with a “formal framework for regulatory co-operation”.

Among the measures on which Mr Osborne and Mr Carney said that the UK should press European and US regulators is the implementation of a common “leverage ratio” of banks’ total assets to core equity.

According to one section of the minutes, Mr Osborne said it was “crucial” that agreement was reached on “high, internationally consistent, regulatory standards in supporting global financial markets”.

The disclosure of the meeting came in the first minutes released by the Treasury and the Bank of the talks held by the Chancellor and the Governor.

Among other issues discussed were financial liquidity rules, the capital strength of major lenders, and disclosure requirements for the banking sector.

Last week, Mr Carney confirmed that banks which were able to satisfy regulators that they had sufficient core capital would be allowed to hold lower liquidity buffers than their peers.

The Bank of England estimates that if all the country’s eight largest banks and building societies were to meet these standards, it would release an additional £90bn of potential funding into the economy.

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