→ visit Tradeweb.com
FinReg|Alert

Your Source for Regulatory Intelligence




  • Home
  • News
  • Comments
  • Video
  • Resources
    • Regulation
    • Research
  • MiFID Alert
  • About
    • Contact

Ending Leverage Ratio Relief Could Force US banks to Downsize

  • Home
  • News
  • Comments
  • Video
  • Resources
    • Regulation
    • Research
  • MiFID Alert
  • About
    • Contact

Ending Leverage Ratio Relief Could Force US banks to Downsize

Posted on Wed, Feb 10, 2021 @ 7:05

By Louie Woodall
February 9, 2021,
Risk

The removal of a carve-out of US Treasuries and excess reserves from the calculation of the supplementary leverage ratio could force large US banks to slash their exposures, industry sources warn. This, in turn, could sap liquidity from repo lending, a cornerstone of money markets.

The Federal Reserve ordered the exemption last April to ease leverage capital charges caused by ballooning excess reserves and increased market-making in US Treasuries at top banks. It is due to expire on March 31, and the Fed has so far given no indication that it will grant an extension.

full article

BanksBasel IIICapital RequirementsCentral BanksFederal ReserveLeverageLeverage RatioMoney MarketsSLRTreasury Market
 

  • MiFID II Review to Look at Systematic Internalizers

  • Blast From the Past: EU Tells Traders Working From Home: Take Notes if You Can’t Record Calls

  • Blast From the Past: EU Watchdog to Nudge Bond Trades Closer to Real-Time Transparency

  • Blast From the Past: Traders Across Europe Face Up to the Cost of Failure

  • Blast From the Past: Passive Investing Boom Reaches Europe as Assets Hit $1 Trillion

More →

Archives

 

 

 

Tweets by @TWMiFID

Stay Informed

Updates on the latest regulations affecting the global fixed-income, derivatives, and ETF markets.
Subscribe

Popular Topics

Derivatives
MiFID II
MiFIR
Video
 

  • MiFID II Review to Look at Systematic Internalizers

  • Blast From the Past: EU Tells Traders Working From Home: Take Notes if You Can’t Record Calls

  • Blast From the Past: EU Watchdog to Nudge Bond Trades Closer to Real-Time Transparency

  • Blast From the Past: Traders Across Europe Face Up to the Cost of Failure

  • Blast From the Past: Passive Investing Boom Reaches Europe as Assets Hit $1 Trillion

More →

Archives

 

 

 

  • Events
  • About
  • Contact
  • Privacy Guidelines
  • Disclaimer
  • Terms of Use