A Brief Round-Up From The UK

By way of diversion from the current crisis mode of regulators the world over, here we discuss positive regulatory initiatives on bank liquidity, CDS clearing and the development of Long Term Asset Funds.

UK bank regulators give feedback on High Quality Liquid Assets usage

The Bank of England and Prudential Regulation Authority ("PRA") have published a joint Feedback Statement ("FS") on their Discussion Paper 1/22 on 'The prudential liquidity framework: Supporting liquid asset usability'. While the FS contains no policy proposals or indications on how the PRA 'is considering to support banks in prudently using their [liquid assets] when facing liquidity pressures in the future', it does discuss their concern that banks are 'overly reluctant' to use their stock of High Quality Liquid Assets ("HQLA"). A sufficient reserve of HQLA available to meet payment obligations in situations of severe short-term stress is a requirement of the post-GFC requirement of a