HM Treasury yesterday started a consultation on the FPC’s proposed macro-prudential tools. The press release is here and the consultation document is here. From the press release:
“This document seeks comments on the Government’s intention to:
- make the FPC responsible for setting the level of the UK’s counter-cyclical capital buffer;
- provide the FPC with a direction-making power to impose sectoral capital requirements; and
- provide the FPC with a time-varying leverage ratio direction-making tool, but no earlier than 2018 and subject to a review in 2017 to assess progress on international standards.
The document contains draft secondary legislation that will provide the FPC with its directive tools, and an Impact Assessment that contains illustrative estimates of the net benefits of the FPC’s macro-prudential tools.”
The consultation closes on 11 December 2012.
