Post-crisis capital rules set to ease

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.

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

This refers to the amount that banks must set aside as a buffer against risky lending and investments, to cushion against any losses.