BOE Eases Up on Banks in Latest Version of New Capital Rules
- Rules now lead to 1% increase in Tier 1 capital requirements
- UK becomes latest jurisdiction to revise the package of rules
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The Bank of England said it made significant changes to new bank capital rules that will mean the measures leave key requirements “virtually unchanged” for lenders across the UK, becoming the latest jurisdiction to make sweeping revisions to the package.
The BOE said the measures would ultimately lead to a less than 1% increase in how much Tier 1 capital lenders must hold as a cushion against financial shocks, according to a statement. For banks, that’s an improvement from the BOE’s most recent estimates, which had predicted a 3% increase in the requirement.