The package will also move the calibration of the additional leverage ratio buffer for firms with systemic buffers into line with international standards, and make a greater share of leverage requirements and buffers releasable in stress.

The FPC said the wider capital review is intended to make the framework simpler, more proportionate and better calibrated to risks in the financial system. It said the reforms should make it easier for banks to use capital to support lending to households and businesses, and the functioning of core sterling markets, while keeping the system resilient.

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