Post-COVID capital buffer requirement to be scrapped by the Bank of England
Now that the risk of a pandemic has passed,
The Bank of England announced on Monday that it would withdraw a post-COVID capital buffer adjustment.
“Removing a no longer necessary temporary capital adjustment aims to achieve simplicity and improve proportionality,
So facilitating effective competition,” the Bank of England said in a statement.
To balance capital requirements and macroprudential buffers,
The Prudential Regulation Authority (PRA) of the Bank of England announced a temporary increase in the buffer for all enterprises that got a Pillar 2A decrease under its PS15/20 policy in July 2020.