Treasury is consulting on the proposed tools the Financial Policy Committee (FPC) will be able to use to address systemic risks to the UK financial system under the Financial Services Bill. These include:
- control over the level of the UK’s counter-cyclical capital buffer;
- a direction-making power to impose sectoral capital requirements; and
- once international standards are in place, the power to set, and vary over time, a leverage ratio cap.
Treasury wants comments by 11 December.(Source: Treasury Consults on FPC Tools)