After the Bank of England published its Financial Stability Report, sterling
traded near one-year highs against the euro and UK gilt yields remained elevated
with little change. The report says the UK financial system remains resilient
and continues to support the real economy despite developments in the Middle
East, but flags vulnerabilities in risk assets, sovereign debt and high‑yield
credit. The FCA and PRA are reviewing measures including removing the
countercyclical leverage buffer from banks’ leverage requirements and cutting
the minimum Tier 1 leverage ratio from 3.25% to 3%.
