BOE’s FPC Says It’s Ready to Do More to Help Financial System

(Bloomberg) --

The Bank of England’s Financial Policy Committee said it’s prepared to take further action as needed to help the financial system through the coronavirus pandemic and support the economy.

U.K. banks are able to withstand the market stress and have built up significant capital in recent years to absorb losses in a downturn, the macroprudental regulator said in a summary of its March meetings.

The central bank’s Monetary Policy Committee has slashed interest rates, launched 240 billion pounds ($280 billion) of asset purchases and started new financing facilities to try to keep credit flowing in the economy.

Meanwhile, the BOE’s bank supervisors have lowered capital requirements on lenders and postponed annual stress tests on HSBC Holdings Plc, Barclays Plc and six other major lenders.

The FPC said it will “continue to monitor closely the credit conditions faced by U.K. households and businesses and the operation of the U.K. financial system, and stands ready to take any further actions deemed appropriate to support U.K. financial stability.”

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