FSA loosens capital rules for banks

The Financial Services Authority (FSA) has eased capital buffers for the UK's largest banks, meaning that loans given through the government's 'Funding for Lending' (FLS) scheme can be effectively be classed as risk-free.

The Financial Services Authority (FSA) has eased capital buffers for the UK's largest banks, meaning that loans given through the government's 'Funding for Lending' (FLS) scheme can be effectively be classed as risk-free.

According to The Financial Times on Tuesday night, the move "puts Britain at the forefront of a global experiment to use bank regulation to moderate the economy cycle".

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