UK banks say ready to lend more after capital requirements cut

[LONDON] Some of Britain's biggest financial institutions said they were ready to lend more after a decision by the Bank of England to cut their capital requirements, according to a joint statement with finance minister George Osborne on Tuesday.

The Bank of England, which is trying to ease the hit to the economy from last month's vote to leave the European Union, said it would lower the amount of capital banks are required to hold in reserve, potentially freeing up an extra 150 billion pounds (S$267 billion) for lending.

"Now the UK's main lenders, meeting with the Chancellor this morning, have agreed to make the extra capital available to support lending to UK businesses and households in this challenging time," the lenders and Mr Osborne said.

Mr Osborne met with the chairmen or directors of Virgin Money, Santander UK, HSBC, Metro Bank, Royal Bank of Scotland, Nationwide Building Society, Barclays and Lloyds Banking Group.

REUTERS