UK banks are set to be handed a boost from the loosening of capital rules.

UK banks are gearing up to supercharge the government’s growth agenda with reforms to lenders’ capital requirements set to unlock billions of free cash.

The Bank of England is set to take the chop to rules around capital requirements, as part of a “fresh up” of rules in a six-month review to be published on Tuesday.

It comes amid lobbying efforts from the banking industry body UK Finance , which has claimed up to £54bn of extra capital has been racked up by the sector due to holding rules.

As per a report from the central bank in 2015, the sufficient capital level for banks was set at 14 per cent.

This means 14 per cent of a bank’s risk-weighted assets must be funds that can absorb unexpected losses without

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