Committee on Banking Supervision's (BCBS) announcement that
it won’t raise the level of the leverage ratio may
be a victory for banks but the ratio itself may still push them
out of the derivatives clearing space.
The Basel Committee is aware of concerns over the leverage
ratio. The Committee is expected to revisit one such key issue
this year, namely how banks calculating the leverage ratio must
count clients’ collateral as their own when
"That squeezes banks’ balance sheets, and so
the argument is banks are simply shying away," said V
Gerard Comizio, partner at
Futures Trading Commission (CFTC) supports a change to this
requirement. But US regulators are not a homogenous group. The
Insurance Corporation (FDIC) is much less supportive, most
notably in the person of its vice-chairman, Tom Hoenig.
V Gerard Comizio