Stress tests: Bank of England flags up buy-to-let concerns
by Jill Treanor from on (#WB60)
BoE reviewing lending criteria adopted by firms and puts banks on notice about holding 10bn capital cushion to guard against economic downturn
The Bank of England is scrutinising the terms under which mortgages are being granted to buy-to-let landlords as it decides whether to take action to cool the fast-growing market.
The Bank's latest warning to landlords came in a list of risks to the financial system, as Threadneedle Street put banks on notice thatthey could be forced to hold a special capital cushion of up to 10bn to guard against any economic downturn.
Related: UK banks pass stress tests, but RBS and Standard Chartered are weakest - live updates
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