Bank Of England Releases Proposal For Implementing EU Capital Rules


U.K. banks may have to hold more capital against market risk in foreign exchange and other trading areas than other European banks under new Bank of England rules proposed last week to bring the U.K. into compliance with the European Union's capital adequacy directive (CAD). The Securities and Futures Authority has already released its proposed rules, which will apply to investment banks in the U.K.

The CAD, which will take effect in January, 1996, will apply to both banks and investment bank