British banks 'must disclose leverage ratios'

2 December 2011

Banks in the UK have been told to inform investors of their leverage ratios in their reports earlier than was originally planned.

The Financial Policy Committee (FPC) has instructed British financiers to disclose this information from 2013 onwards within the Bank of England's latest Financial Stability Report, the Independent reports.

This is some two years before the previous deadline as the regulatory body feels bringing the date forward will help make the financial health of an institution more transparent for prospective investors.

"Opaque and overly complex regulatory risk-weight calculations and inconsistent and incomplete disclosure have increased uncertainty about bank resilience," the FPC added.

It went on to state that a lack of knowledge among professionals represents one of the primary reasons financial companies are finding it tough to raise money during this fragile economic climate.

This comes after the UK government announced a further increase in the levy implemented on banks to 0.088 per cent as of 1 January 2012.

By Gary Cooper

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development