Key facts
- The Bank of England's Financial Policy Committee has proposed changes to the UK's leverage ratio.
- These changes are intended to rebalance scales in favor of domestic lending.
- HSBC and Standard Chartered are expected to face higher capital requirements.
- Other UK lenders are likely to see their capital requirements reduced.
The Bank of England's Financial Policy Committee (FPC) has proposed changes to the UK's leverage ratio, which are expected to impact the capital requirements of major banks. The proposed adjustments aim to rebalance the scales in favor of domestic lending activities over international operations. Consequently, HSBC and Standard Chartered are anticipated to experience a slight increase in their capital requirements. In contrast, other domestic lenders within the UK are projected to see a reduction in their capital requirements under the new framework.