Correspondence

Leverage ratio review: letters between the Chancellor and Governor of the Bank of England

Exchange of letters between the Chancellor of the Exchequer and Governor of the Bank of England on the review of the leverage ratio.

Documents

Letter from the Chancellor to the Governor of the Bank of England (October 2014)

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Letter from the Governor of the Bank of England to the Chancellor (October 2014)

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Letter from the Chancellor to the Governor of the Bank of England (November 2013)

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Letter from the Governor of the Bank of England to the Chancellor (November 2013)

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Details

In light of international developments, the Chancellor judged that it was an appropriate time for the Financial Policy Committee (FPC) to consider all outstanding issues relating to the leverage ratio and on 26 November 2013, requested that the FPC undertake a review of the leverage ratio and its role in the regulatory framework.

Following almost a year of work and extensive consultation with stakeholders, on 31 October 2014 the FPC published its response, the Review of the Leverage Ratio which recommended that the FPC be given new powers of direction over the leverage ratio framework for the UK banking sector.

The Chancellor has welcomed the recommendations and intends to take forward legislation in this Parliament to grant the FPC new powers of direction over the Prudential Regulation Authority (PRA).

Published 26 November 2013
Last updated 31 October 2014 + show all updates
  1. Exchange of letters added following the publication of the FPC's response to the Review of the Leverage Ratio
  2. First published.