Are Bank Regulations Creating New Risk Pools?

Lukas Becker, writing on, points out that the recent emphasis on “stress testing” banks, coupled with incoming leverage ratio requirements, are causing some banks, especially in Europe, to lower their long-term/less-liquid loan portfolios. As Becker notes, quoting Mark Penney, head of balance sheet management for the global markets business at HSBC in London: “We’re seeing a slight […]

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