Bank of England to drop post-COVID capital buffer rule

The Bank of England said on Monday that it would remove a post-COVID capital buffer adjustment now that risks from the pandemic had subsided. 'Removing a temporary capital adjustment that is no longer necessary aims to achieve simplicity and enhances proportionality, thereby facilitating effective competition,' the BoE said in a statement. In July 2020, the BoE's Prudential Regulation Authority (PRA) announced the temporary increase of the buffer for all firms that received a Pillar 2A reduction under its PS15/20 policy to reconcile capital requirements and macroprudential buffers