U.K. Bank Regulation Risks Alienating Investors, ABI Says

U.K. banks’ business models risk becoming “unsustainable,” discouraging investors as tougher regulations reduce lenders’ return on equity, according to the Association of British Insurers.

Regulators’ commitment to reducing leverage, increasing banks’ capital reserves and imposing new rules to prevent a repeat of the 2008 financial crisis may deter equity investments in banks, the London-based ABI, which represents investors with