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    Bank Of England

    Bank of England Cuts Minimum Capital Requirements to Encourage Lending

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    The Bank of England (BoE) decided to reduce its countercyclical capital buffer rate to 0 percent to support lenders during the period of uncertainty following the results of the referendum on the United Kingdom's membership of the European Union.

    MOSCOW (Sputnik) — The Bank of England's report also suggested that the decision would raise banks' capacity for lending to UK households and businesses by up to 150 billion pounds ($197 billion).

    "The FPC reduced the UK countercyclical capital buffer rate from 0.5% to 0% of banks' UK exposures with immediate effect… The FPC expects to maintain a 0% UK countercyclical capital buffer rate until at least June 2017," the BoE's Financial Stability report reads.

    On June 23, a nationwide referendum was held in the United Kingdom, in which 51.9 percent of voters supported the country withdrawing from the European Union.

    Related:

    Bank of England Pumps $4.1Bln Into Banking System After Brexit
    Bank of England Pledges to Ensure Stability After Britain Votes to Leave EU
    'Brexit' Risk Paralyzing Bank of England Decision-Making
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    lending, capital, European Union, Bank of England, United Kingdom
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