June 27, 2024 09:30 GMT
MNI BRIEF: UK Bank System Well Capitalised, CCYB Unch- BOE FPC
(MNI) LONDON
The BOE FPC sees banking system well placed to support households, businesses in downturn
The Bank of England sees the UK banking system as 'well capitalised', with banks maintaining a strong liquidity position, the minutes of the June Financial Policy Committee meeting showed.
According to the minutes and the Financial Stability Report, the Banking system has the capacity to support households and businesses, even if economic and financial conditions are substantially worse than expected. The return on equity for major UK banks has risen in aggregate to around the cost of equity, while asset quality remains strong.
The Counter Cyclical Capital Buffer was maintained at the neutral 2%, although the FPC said it would monitor developments and stands ready to vary the UK CCyB rate in either direction if needed.
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