Linked Data API

Show Search Form

Search Results

1235822
registered interest false more like this
date less than 2020-09-18more like thismore than 2020-09-18
answering body
Treasury more like this
answering dept id 14 more like this
answering dept short name Treasury more like this
answering dept sort name Treasury more like this
hansard heading Investment Income more like this
house id 2 more like this
legislature
25277
pref label House of Lords more like this
question text To ask Her Majesty's Government what assessment they have made of the impact that dividend recapitalisations have on financial security (1) nationally, and (2) internationally. more like this
tabling member printed
Baroness Bennett of Manor Castle more like this
uin HL8266 more like this
answer
answer
is ministerial correction false more like this
date of answer less than 2020-10-01more like thismore than 2020-10-01
answer text <p>A key part of the government’s economic policy objective is to preserve and enhance the stability of the UK’s financial system. This is reflected in the remit of the Financial Policy Committee (FPC) at the Bank of England, which is responsible for identifying, monitoring and taking action to remove or reduce systemic risks.</p><p> </p><p>There is little sign of dividend recapitalisations further increasing the leverage of borrowers in 2020 to levels above post-Global Financial Crisis average.</p><p> </p><p>Dividend recapitalisations are a small part of the broader leveraged loan market. They’ve accounted for slightly under 25% of September 2020 issuances to date. All the dividend recapitalisation issuances from July to September 2020 have been from US corporates.</p><p> </p><p>In addition, the Bank of England has ensured that the major UK banks hold enough capital to withstand losses on their leveraged loan portfolios commensurate with loss rates more severe than those experienced in the 2008 Global Financial Crisis.</p><p> </p><p>Given the US-focussed nature of the market, the Bank is also active in international discussions related to banks and non-banks. The Bank remains a key contributor to the work of the Financial Stability Board, including their analysis of leveraged loans.</p>
answering member printed Lord Agnew of Oulton more like this
question first answered
less than 2020-10-01T11:56:22.027Zmore like thismore than 2020-10-01T11:56:22.027Z
answering member
4689
label Biography information for Lord Agnew of Oulton more like this
tabling member
4719
label Biography information for Baroness Bennett of Manor Castle more like this