PRA protects clearing from leverage ratio hammer-blow
Banks say leverage exposure "could be halved" after PRA acts to safeguard business
Clearing businesses at UK banks have welcomed a leverage ratio reprieve from the Prudential Regulation Authority (PRA), which today published plans to implement the new Basel III capital rules in the UK and dramatically limited the exposures that feed into the ratio. According to one early estimate, the changes could more than halve the burden faced by clearing brokers.
"This is very good news for the industry. For months, we've been telling European regulators that the proposed approach just
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