The additional capital headroom will raise “banks’ capacity for lending to UK households and businesses by up to £150 billion”, the Bank said. The Bank of England has reversed a decision to increase the amount of capital banks must hold against cyclical upturns in the credit cycle SEAN DEMPSEY/EPAThe Bank of England has given the UK economy a £150 billion shot in the arm by relaxing financial regulations on Britain’s lenders in its latest attempt to cushion the blow from last month’s Brexit vote. Banks will be able to burn through £5.7 billion of loss-absorbing capital after the decision to scrap the so-called counter-cyclical capital buffer, which was due to come into effect in March next year. Its response to the destabilising impact of the…

Source: The Times July 05, 2016 10:41 UTC