UK Banks Set to Hold 3% More Capital Under BOE’s Basel Plan (1)

The Bank of England outlined how it plans to impose tighter capital rules on lenders, with the central bank unveiling a variety of adjustments and halving an earlier estimate of the expected capital hit.

The measures, which are known as the Basel 3.1 standards, will mean UK banks would have to boost the amount of capital they hold to absorb unexpected losses by about 3%, according to a Tuesday statement from the BOE’s Prudential Regulation Authority. Twelve months ago, an official estimated the effective increase at 6%.

The new expectation is a fraction of the hit that lenders in the ...