Latest news with #financialReform
Bloomberg
12 hours ago
- Business
- Bloomberg
Bessent's Top Bank Reform Is Good for Markets
US banks seem likely to get the changes they want to an obscure but important rule known as the supplementary leverage ratio. The leading reform proposal should cut the capital that banks need for this measure and help make the Treasury market more resilient, but not lead to a giveaway of shareholder capital that could undermine their safety. For the financial system, that's a win-and-not-lose outcome. Treasury Secretary Scott Bessent has been pushing for this to be the first major financial reform since he took on the job. The Federal Reserve said on Tuesday that it will discuss the changes next week and hold an open meeting. Two main changes have been under discussion. The first is to take Treasuries out of tallies for the size of bank balance sheets, which would mean banks could lend to the government almost without using any equity. The second is to reduce the amount of capital banks need for their whole balance sheet, which would allow them to run a larger balance sheet for a wider variety of assets. The latter option is now the leading plan, Bloomberg News reported this week.
CBC
21-05-2025
- Business
- CBC
G7 finance ministers to discuss global economy, Ukraine at Banff summit
Top economic officials from the G7 have locked in for a full day of closed-door discussions in Banff, Alta., to examine pressing topics, including the global economy and the war in Ukraine. The meeting between the group's finance ministers and central bank governors in the Rocky Mountains is a prelude to the G7 leaders' summit in June in nearby Kananaskis, Alta. It comes in the wake of global tariffs initiated in early April by the United States, which have caused many countries to reconsider their trading relationships. With the slopes of Mount Rundle as a backdrop, Finance Minister Francois-Philippe Champagne and Bank of Canada Governor Tiff Macklem shook hands and stood for a photo with the group Wednesday morning. "We brought the sunshine for you, minister — Canadian sunshine," Champagne, flanked by two Mounties, told Japanese Finance Minister Katsunobu Kato in the courtyard of the Rimrock Resort Hotel. Leaders of organizations, including the World Bank, the International Monetary Fund and the Financial Stability Board, are also at the meeting. "We've got lots of financial reform on the agenda," Macklem said to Klaas Knot, chair of the Financial Stability Board. "I love financial stability, today and tomorrow," Knot replied. U.S. Treasury Secretary Scott Bessent, one of the key architects behind President Donald Trump's sweeping tariffs, is also in Banff, along with Jerome Powell, chair of the U.S. Federal Reserve, whom Trump has threatened to fire on several occasions in recent months. Bessent and Champagne exchanged a friendly handshake at the photo opportunity. "It's great to have you here," Champagne said. In an earlier statement, Bessent's office said he plans to use the meeting to "focus on the need to address global economic imbalances and non-market practices." Champagne said Tuesday the "spirit around the table is constructive," when it comes to its discussions with the United States. Ministers did not take questions from media and aren't expected to comment on the meeting until it wraps Thursday. After photos were snapped, the officials marched toward the doors of the hotel in pairs. "Let's get to work," Champagne said as he directed them inside.
Reuters
14-05-2025
- Business
- Reuters
Bank of England to seek feedback on gilt repo reforms, Breeden says
LONDON, May 14 (Reuters) - The Bank of England will start talking to players in the financial services industry about possible reforms to make sure the gilt repo market is resilient, BoE Deputy Governor Sarah Breeden said on Wednesday. The BoE's Financial Policy Committee said in November it wanted to strengthen the market which came under stress in 2022 when British government bond prices slumped following then prime minister Liz Truss's "mini-budget." "We will start a conversation with industry via a Discussion Paper later this year on possible reforms to market structure to enhance gilt repo market resilience," Breeden said in the text of a speech to the annual meeting of the international Swaps and Derivatives Association in Amsterdam.
