The Bank of England has given the economy a £150 billion shot in the arm by relaxing financial regulations on lenders in its latest attempt to cushion the blow from the 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 set to come into effect in March next year. The additional capital headroom will raise banks’ capacity for lending to UK households and businesses “by up to £150 billion”, the Bank said.
The measure was announced as the chancellor secured commitments from some of the country’s biggest lenders that they would use the capital to support the economy in the aftermath of Brexit. The heads of Barclays,