Why Bank of England Is planning tougher capital rules than the EU ?

The banks in the United Kingdom would face a set of tougher rules with a new proposal from the Bank of England which is considered as an important break away from the European Union laws. The Prudential Regulation Authority (PRA) has ruled against a capital benefit for banks for their investments in software and technology. Last year, the EU had allowed its banks to account for investments in software as part of their core capital levels. Making a scathing statement on the EU’s policy, BoE governor Andrew Bailey said that the policy did not give a correct estimation of a bank’s ability to absorb losses.

The Brexit and regulatory changes, It is not just financial services that are going through a tumultuous phase of regulatory changes, Britain’s exit from the EU has brought along with it a host of complications in terms of rules and regulations in a gamut of services. As part of the Brexit, the UK does not any longer belong to the customs union. This exposes the UK businesses to a host of new paperwork and documentation. Businesses have seen their goods being held up in border areas due to lack of clearances.

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is not authorised or regulated by the Financial Conduct Authority to provide regulated advice. The purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. The Content is guidance about the different types of investments that are available and sets out general principles to continue before making investment decisions. Kalkine Media is neither authorised nor qualified to provide regulated investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from an appropriately authorised and/or qualified financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.