LONDON Nov 29 Britain's banking regulator said
on Friday that major lenders and building societies must hold a
core capital buffer equivalent to 7 percent of their
risk-weighted assets from January 2014.
The Bank of England's Prudential Regulation Authority also
said in a statement that the same institutions must also comply
with a leverage ratio of 3 percent from the same date. This is a
measure of capital in proportion to a bank's total assets on a
non-risk weighted basis.
The PRA said it was announcing key decisions on bank capital
standards ahead of the introduction of new European Union rules
"These decisions will enhance the stability of the financial
sector and strengthen the capital regime in the UK," the PRA
"Although the PRA has not finalised all aspects of the
rules, it is setting out a number of key decisions in order to
give firms clarity on the key policy issues that affect the
minimum level of common equitytier 1 (CET1) capital which firms
need to maintain," the PRA said.