In the GT Alert we produced in September, we commented on the inquiry the Financial Services Regulation Committee (the Committee) of the House of Lords commenced on non-bank financial institutions (NBFIs). One of the main questions that the Committee is considering is whether the regulatory capital regime that applies to banks was inhibiting bank lending to the real economy, resulting in the growing importance of NBFIs as a source of credit.
In this GT Alert, we consider certain views witnesses appearing before the Committee have expressed on the topic of regulatory capital.