LONDON, March 5 (Xinhua) -- The Bank of England's Prudential Regulation Authority (PRA) on Wednesday proposed raising the retail deposit threshold under its leverage ratio rules from 50 billion pounds (64 billion U.S. dollars) to 70 billion pounds, aiming to provide smaller banks with greater flexibility for growth while maintaining financial stability.
The leverage ratio, introduced after the 2008 financial crisis, requires banks to hold capital equal to at least 3.25 percent of their total exposures to mitigate excessive borrowing risks. Currently, banks with more than 50 billion pounds in retail deposits or 10 billion pounds in non-United Kingdom (UK) assets must comply with the rule.
