for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

Bank of England's Bailey urges banks to tap capital buffers

LONDON, Oct 8 (Reuters) - Banks should not be uneasy about dipping into their capital buffers to keep lending to the coronavirus-hit economy, Bank of England Governor Andrew Bailey said on Thursday.

The key message to the banking sector is that capital buffers are there to be used at a time like the present, Bailey told an online event.

“I understand there is a natural unease to do that. Given the history of this, given the financial crisis, it’s a brave person who says yes, I am going to run my capital ratio down,” Bailey said.

“We have to use the stress test to demonstrate that is a realistic and sensible policy.” (Reporting by Huw Jones Editing by William Schomberg)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up