A person is silhouetted as he walks past The Bank of England, amid the outbreak of the coronavirus disease (COVID-19), in London, Britain, November 5, 2020. REUTERS/John Sibley/File Photo
There is a “strong case” for minimum ‘risk weightings’ on mortgages across all banks to ensure fair competition in the home loans market, Bank of England Deputy Governor Sam Woods said on Wednesday.
Woods said there is a “strong prudential case for some minimum expectations” on how banks attach risk weights to mortgages on their books, a calculation that determines how much capital lenders hold to cover any loans that turn sour.
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source: reuters.com