BOE Imposes Tougher Rule on Banks in First Post-Brexit Proposal

The Bank of England used its first major regulatory proposal since the end of the Brexit transition period to impose a tougher rule on British banks than they would face if the U.K. was still part of the bloc.

The central bank’s Prudential Regulation Authority said it won’t allow lenders in the country to get a capital benefit from their investments in software technology. The decision contrasts with a move by the European Union last year to allow its lenders, including Deutsche Bank AG, to get a break on capital worth up to 20 billion euros ($24 billion).