FPC has published the record of its meeting held on 19 March. Together with its recommendations to strengthen UK banks’ capital along stricter risk weights, asset value and redress calculations, FPC also asked PRA to:
- apply higher capital requirements where there is high leverage and/or concentration of exposures to vulnerable assets;
- ensure that contingent capital is clearly capable of absorbing losses in a going concern;
- ensure that UK banks have plans to transition to Basel 3 requirements; and
- undertake regular stress testing of the UK banking system.
Among extant recommendations, FPC noted it had already encouraged banks to report their leverage ratios from the beginning of 2013. (Source: Record of the FPC Meeting)