Bank of England waters down plans to impose tougher capital rules on UK banks
by Kalyeena Makortoff Banking correspondent from on (#6QNX6)
Chancellor says revision of how much lenders must set aside to cope with future crises will bolster growth
The Bank of England has watered down new capital rules meant to shock-proof the banking system from another 2008-style crash, in a move the Labour government says will bolster its economic growth plans.
The regulator said it had made substantial changes" to earlier proposals, meaning UK banks would not have to set aside as much money for capital buffers as previously planned. Capital buffers provide a financial cushion against risky lending and investments on bank balance sheets.
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