BoE tightens countercyclical buffer as risks stabilise
Banks expected to meet higher rate without cutting lending, even as capital ratios dip
The Bank of England has raised its countercyclical capital buffer (CCyB), as policy-makers say risks have returned to a “standard” level after the impact of the Covid-19 pandemic.
The BoE’s financial policy committee set the buffer rate at 1% today (December 13), up from 0%. Banks will have until December 2022 to meet the new rate.
The FPC added that it expected to raise the CCyB to 2% in the second quarter of 2022, provided the economy evolves in line with the BoE’s forecasts.
“Before the
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Most read
- Central banks prepare for the rise of AI
- Bundesbank’s Nagel: central bank business models are changing
- Central bank of the year: Central Bank of Brazil