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The Bank of England has lowered its system-wide capital benchmark for UK banks, arguing this level maintains resilience while easing pressure on lending and growth. The shift, along with a clearer framework for how buffers should be used, is meant to reassure banks that they can deploy capital more confidently rather than hoard it. Overall, the Bank aims to encourage more lending to support the economy while keeping enough safeguards in place to withstand future shocks.
Chief executives of UK banks say that a strong economy needs strong banks. They’re right. Since the Great Financial Crisis, building resilience into the banking system has been central to the work of the Bank of England’s Financial Policy Committee.
https://www.ft.com/content/efb2d08e-0fe2-413b-b67e-c3598a4e233b
