BoE Modifies Banks' Buffer Requirement

(RTTNews) - The Bank of England plans to introduce additional capital requirements for big banks, according to the record of the Financial Policy Committee meeting held in May.

The FPC recommended to set the threshold for systemic importance above which a non-zero systemic risk buffer rate would apply at GBP 175 billion of total assets. Above this threshold, it should adopt a graduated approach.

"However, it considered again an alternative calibration of the SRB framework in which the graduated approach was retained but the SRB rate for all buckets above the FPC's GBP 175 billion threshold for systemic importance were raised by 50 basis points," the report showed.

The FPC estimated the impact of the recommendation on firms to be very small at present.