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UK central bank clears path for more lending, but will banks oblige?

By Sofia Gerace ( December 3, 2025, 10:28 GMT | Comment) -- Major UK lenders this week saw capital requirements eased for the first time in the post-crisis era, with a cut in the amount that they must hold in reserve intended to meet the government's expectation of the Bank of England to help drive economic growth. But at the same time, the BOE made clear that it can't promise that banks will be rushing to expand their loan books.With stress testing having shown that UK banks can absorb severe shocks, the Bank of England has eased capital requirements on them for the first time in the period since the global financial crisis almost two decades ago....

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