BOE relaxes bank rules as Brexit risks 'crystallise'

London

THE Bank of England (BOE) on Tuesday relaxed commercial banks' capital requirements to boost lending to businesses and households, and warned that financial stability risks "have begun to crystallise" after Brexit.

The British central bank announced it has cut its so-called capital buffer rate from 0.50 per cent to zero, where it will stay until at least June 2017.

The move will boost lending by up to £150 billion (S$265 billion) - and reduce banks' regulatory capital buffers by £5.7 billion, the BOE announced. BOE governor Mark Carney pledged it would do whatever is needed t…