LONDON Aug 28 Britain's eight top lenders can
cut their cash buffers by a collective 90 billion pounds ($140
billion) to help economic growth, the Prudential Regulation
Authority said on Wednesday.
The Bank of England based PRA said in a statement it was
implementing a policy decided in June by the central bank's
Financial Policy Committee.
Britain's lenders have been forced in the past to build up
liquidity buffers of cash and government bonds far earlier than
required under a globally-agreed timetable.
The PRA said banks can scale back their liquidity buffers on
condition they have a minimum core capital ratio of 7 percent.
The watchdog has already said it expects the lenders to meet
this condition by the end of this year.
The change was announced on Wednesday by Mark Carney in his
maiden speech as governor of the Bank of England.