BOE Announcement Is Chance for Banks to Change Capital-Ratio Narrative -- Market Talk

Dow Jones12-02

0907 GMT - The Bank of England loosening capital standards is an opportunity for banks to start changing the narrative on common equity tier 1, a key capital ratio, RBC Capital Markets says in a research note. The BOE plans to trim the tier 1 requirement to around 13% from 14%, with implementation of the Basel 3.1 rules in 2027. This would free up 8.47 billion pounds of capital for the eight U.K. lenders in RBC's coverage. "We would try and shift emphasis away from absolute CET1 ratios, and instead make the focus of investor presentations capital levels relative to regulatory targets," analyst Benjamin Toms writes. If some banks start to bring down management targets in the next 12 months, this will be of particular importance, he adds. (elena.vardon@wsj.com)

 

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December 02, 2025 04:07 ET (09:07 GMT)

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