Dec
13
Bank of England Says Lenders Must Issue Additional Debt Under New Rules
ByLONDON — Banks, building societies and investment firms in Britain would need to issue an estimated 27 billion pounds, or about $41 billion, in new debt by 2020 to comply with European Union rules intended to lessen the need for future bailouts, the Bank of England said on Friday.
The new rules, known as the minimum requirement for own funds and eligible liabilities, or MREL, would require European banks and other regulated financial institutions to maintain sufficient equity and other liabilities to absorb losses in a time of financial stress. The goal is to minimize risk for the overall financial system while protecting depositors…
Bank of England Says Lenders Must Issue Additional Debt Under New Rules
