BoE proposes lower bank leverage ratio amid rising market risks
FPC warns that pace of AI investment is ‘unprecedented’ and sovereign debt is ‘historically high’
The Bank of England’s financial policy committee (FPC) has proposed loosening its capital framework for lenders, as it warns of heightened risks from intensified leverage in the financial markets.
In December 2025, the BoE initiated a review into the leverage ratio, which limits borrowing by specifying how much capital banks must hold against their total assets.
In the record of its June 26 meeting, published today (July 7), the FPC states that the pace of investment in artificial intelligence is
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