Business · 8 July 2026
Bank of England to ease bank capital rules despite AI concerns
The Bank of England intends to relax capital adequacy rules for large UK banks, with the goal of stimulating lending and economic expansion. The change includes scrapping a buffer within the leverage ratio, which will mainly benefit large domestic banks like NatWest and Lloyds. Nevertheless, certain policymakers are concerned this might heighten financial instability, particularly given swift AI advancements and equity investments driven by debt.
Reported by Guardian · How we write briefs