Bank of England to loosen post-financial crisis capital rules for banks

The Bank of England has cut its estimate for the level of cash reserves banks must hold to protect against their collapse (Jonathan Brady/PA) - (PA Archive)

The Bank of England has cut its estimate for the level of capital reserves that banks must hold to protect against their collapse, in a significant loosening of post-financial crisis regulations.

The new capital requirements for banks will be lowered from about 14% to 13% of risk-weighted assets, under the Bank’s proposals.