Top UK Banks Resist BOE Push to Cut Capital Buffers to Lend More

The UK’s top banks are resisting a regulatory initiative to boost lending by lowering their capital levels, people familiar with the matter said, casting doubt over an effort to boost growth.

Major banks have had almost three months to digest the practical impact of the Bank of England’s December announcement that the ‘benchmark’ level of Tier 1 capital should be 13%, 1 percentage point lower than its prior guidance. The announcement from the central bank’s Financial Policy Committee, which has drawn fire for potentially increasing risks, came as the US continues to slash rules for its banks, while Europe considers its own reprieves.