The Bank of England (BOE) said requirements put in place after the 2008 financial crisis will help U.K. banks withstand market turmoil in the wake of Britain's decision to quit the European Union.
Capital requirements at the largest U.K. lenders are 10 times higher than before the crisis and are designed to enable banks to continue lending to businesses and households, BOE Governor Mark Carney said in a statement after Britain voted to secede. The result triggered a plunge in European stocks, with Barclays Plc and Royal Bank of Scotland Group Plc among the biggest losers.
"This substantial capital and huge liquidity gives banks the flexibility they need to continue to lend to U.K. businesses and households, even during challenging times," Carney said. The U.K. financial system is resilient and "one that the Bank of England has consistently strengthened over the last seven years."
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