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Bank of England Cuts Capital Requirements, Sparks Criticism

1/15/2026

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Summary

Story summary

The Bank of England lowered Tier 1 capital requirements for banks by 1 percentage point, drawing criticism from John Vickers and David Aikman, former Bank of England officials.
They warn the move could enrich shareholders and raise financial risk rather than spur lending.
They say higher capital requirements are needed to protect against losses and reduce the chance of taxpayer bailouts.
The Tier 1 target is 13% of risk-weighted assets.

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Story summary

The Bank of England lowered Tier 1 capital requirements for banks by 1 percentage point, drawing criticism from John Vickers and David Aikman, former Bank of England officials.
They warn the move could enrich shareholders and raise financial risk rather than spur lending.
They say higher capital requirements are needed to protect against losses and reduce the chance of taxpayer bailouts.
The Tier 1 target is 13% of risk-weighted assets.