Brexit poses "material risks" to the BoE's objectives of maintaining stable lenders, but "we are well on the case in dealing with them", Woods said. It was an additional "dynamic" to "cliff-edge" risks from Brexit, and differences over finalising global bank capital rules, he said. The United States has forced foreign banks operating there to set up holding companies with their own capital, and the European Union is following suit. This will affect a handful of banks and is in line with the current treatment of non-EU banks which have UK branches. He also announced a public consultation to tighten oversight of double-leverage, or when UK parent banks have to issue debt to capitalise subsidiaries elsewhere in the world.

Source: New York Times October 04, 2017 18:22 UTC