Bank of England to drop post-COVID capital buffer rule

·1-min read
FILE PHOTO: Bank of England (BoE) building seen in London

LONDON (Reuters) - The Bank of England said on Monday that it would remove a post-COVID capital buffer adjustment now that risks from the pandemic had subsided.

"Removing a temporary capital adjustment that is no longer necessary aims to achieve simplicity and enhances proportionality, thereby facilitating effective competition," the BoE said in a statement.

In July 2020, the BoE's Prudential Regulation Authority (PRA) announced the temporary increase of the buffer for all firms that received a Pillar 2A reduction under its PS15/20 policy to reconcile capital requirements and macroprudential buffers.

(Writing by William Schomberg; editing by David Milliken)

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