bank of england tightens capital requirements as debt surges
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Bank of England tightens capital requirements as debt surges

Arab Today, arab today

Arab Today, arab today Bank of England tightens capital requirements as debt surges

The Bank of England in the City of London
London - Arab Today

The Bank of England on Tuesday said retail lenders need combined capital reserves of £11.4 billion ($14.5 billion, 12.9 billion euros) by the end of next year as UK household indebtedness surges.

As expected, banks are from Tuesday increasing the UK countercyclical capital buffer rate from zero percent to 0.5 percent, or by £5.7 billion, the BoE's Financial Policy Committee watchdog said in a bi-annual report.

It added that the FPC expects to increase the rate to 1.0 percent in November, with binding effect a year later.

"The increase to 0.5 percent will raise regulatory buffers of common equity Tier 1 capital by £5.7 billion," the report said. 

"This will provide a buffer of capital that can be released quickly in the event of an adverse shock occurring that threatens to tighten lending conditions."

The BoE noted that consumer credit for items such as cars jumped by 10.3 percent in the year to April -- "markedly faster than nominal household income growth". 

In a press conference following the report's release, BoE governor Mark Carney warned lenders against "forgetting the lessons of the past".

However, he insisted also that Britain's banking sector was strong, and "significantly" more resilient since the financial crisis of almost a decade ago.

At the same time Tuesday, the BoE's report expressed concern about the mortgage market and called on banks to tighten affordability tests for home loans.

"Consumer credit has increased rapidly," the report said. 

"Lending conditions in the mortgage market are becoming easier. Lenders may be placing undue weight on the recent performance of loans in benign conditions," it added.

While British economic growth has held up well since the vote for Brexit a year ago, recent official data showing soaring UK inflation is putting pressure on the BoE to raise its main interest rate from a record-low 0.25 percent -- a move that would put further pressure on consumers' affordability.

British inflation surged in May close to a four-year high at 2.9 percent, as a Brexit-fuelled slump in the pound pushed up import costs.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bank of england tightens capital requirements as debt surges bank of england tightens capital requirements as debt surges

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bank of england tightens capital requirements as debt surges bank of england tightens capital requirements as debt surges

 



GMT 01:42 2017 Friday ,27 October

Dec22/Jan20

GMT 08:19 2017 Friday ,14 April

Nelly Karim in Luxor to stimulate tourism

GMT 11:21 2017 Tuesday ,14 March

Leonard inspires as Spurs draw level with Warriors

GMT 02:00 2017 Tuesday ,17 October

August24th-September23rd

GMT 15:28 2017 Monday ,02 January

Yemen army liberates military post in Saada

GMT 08:31 2017 Monday ,07 August

Surprise Dubai Int. Airport for passengers

GMT 06:59 2017 Thursday ,30 March

Bolivia beat Messi-less Argentina 2-0 in qualifier

GMT 12:30 2017 Tuesday ,21 November

Australia coach Cheika probed

GMT 11:32 2017 Friday ,03 March

F&F at Tesco appoints Publicasity

GMT 09:07 2017 Thursday ,17 August

Ibiza struggles to house locals

GMT 22:10 2016 Monday ,19 December

Palestinian teenager shot dead by Israeli forces

GMT 07:59 2017 Friday ,13 October

Bayern have 'no more excuses'

GMT 08:09 2017 Wednesday ,27 September

Black Entertainment Television heads to Korea in Asia first

GMT 16:32 2017 Tuesday ,24 January

Feng Shui Tips for Your Bedroom

GMT 18:43 2018 Wednesday ,31 October

Egyptian pollution plan signals the last straw cloud

GMT 18:56 2018 Friday ,12 October

Iran’s nuclear defiance should not be ignored

GMT 23:22 2018 Monday ,22 January

HM King thanked by Angolan President
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday