On 22 July 2014, the Bank of England (“BoE”) announced that the Financial Policy Committee’s (“FPC”) consultation period on the role of the leverage ratio within the capital framework had been extended to 12 September 2014 (from 14 August 2014). The consultation was originally published on 11 July 2014. The FPC’s final review of the leverage ratio is expected to be published in November 2014.

Mark Carney, Governor of the BoE, confirmed in a letter to the Chair of the Treasury Select Committee, Andrew Tyrie, that the FPC will prepare a draft policy statement on the proposed leverage ratio direction powers in early 2015, which will include the FPC’s views on calibration of the framework. The policy statement should inform the review of the FPC’s powers on the leverage ratio framework.

The FPC’s consultation paper is available here:

http://www.bankofengland.co.uk/financialstability/Documents/fpc/fs_cp.pdf

The BoE letter is available here:

http://www.bankofengland.co.uk/publications/Documents/news/2014/governorletter220714.pdf