Bank of England to force bigger UK lenders to hold more capital as 'risk buffer'

Threadneedle Street wants banks and building societies to be able to continue lending in times of stress

Britain's biggest lenders will be required to hold more capital than smaller rivals to ensure they can keep credit flowing into the economy, under proposals from the Bank of England.

In the latest effort to avoid another taxpayer bailout of the banking system, Threadneedle Street will require the divisions of banks involved in lending to businesses and individuals to keep some capital in a "systemic risk buffer".