LONDON, March 26 (Reuters) - The Bank of England said on Thursday that it would exempt more small lenders from its requirements to set out detailed plans on how they would be broken up in case of
Bank of England raises threshold for lenders to disclose resolution plans
BoE Exempts More Small Lenders from Resolution Plan Requirements
Background and Announcement
LONDON, March 26 (Reuters) - The Bank of England said on Thursday that it would exempt more small lenders from requirements to set out detailed plans on how they would be broken up in case of failure.
Details of the New Threshold
The BoE said that firms with less than 100 billion pounds ($134 billion) of retail deposits would in future be exempt from the reporting and disclosure element of its Resolution Assessment Framework, up from 50 billion pounds currently.
BoE’s Rationale for the Change
"A credible resolution regime needs to be robust, but it also needs to be responsive and proportionate," BoE Deputy Governor Dave Ramsden said.
"These changes reflect the reduced risks that smaller and less complex firms pose to UK financial stability, while ensuring that the largest firms remain resolvable," he said.
Implications for Smaller Banks
Scope of the Framework
Smaller banks will remain in scope for part of the framework under which the BoE assesses firms' resolvability, but they will no longer have to report resolution plans to the BoE or publish a summary of them.
Simplification of Reporting Requirements
The central bank also said it would simplify requirements for reporting funds that could be used for bail-ins and measuring other capital requirements.
Regulatory Context
Government’s Approach to Regulation
Finance minister Rachel Reeves last year told British regulators to take a more business-friendly approach to boost growth, describing some rules as "a boot on the neck of businesses".
Exchange Rate Information
($1 = 0.7491 pounds)
Editorial Credits
(Reporting by David Milliken, editing by Andy Bruce and William Schomberg)
