LONDON, July 22 (Reuters) - The Bank of England said on Tuesday that it would consult with banks for four weeks longer than planned about how it should set leverage ratios, after lawmakers said the original period was too short.
The BoE proposed on July 11 that Britain’s biggest banks should set aside more capital than planned under global rules being drawn up to prevent a repeat of the financial crisis, and launched a consultation on how this should work.
Last week the chairman of parliament’s Treasury Select Committee, Andrew Tyrie, said the initial consultation period of around four weeks was too short.
“Given the concerns you expressed ... and to avoid any suggestion that these important proposals have not been adequately and properly considered, the (BoE) has decided to extend the period for responses,” BoE Governor Mark Carney wrote in a letter to Tyrie published by the central bank.
He added that the BoE was not legally obliged to conduct the consultation, which will now close on Sept. 12. The BoE expects to publish its final review of the role of leverage ratios in bank capital frameworks in November.
Tyrie said in a statement that he welcomed the BoE’s change of heart. (Reporting by David Milliken; Editing by Ruth Pitchford)