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BoE plans to ease capital rules despite concerns over AI stability threats

BoE plans to ease capital rules despite concerns over AI stability threats

The Bank of England plans to loosen capital requirements for major UK lenders, including NatWest and Lloyds, by removing some post-2008 stability buffers. While these changes aim to boost lending and support economic growth, some policymakers expressed concern that reducing buffers could increase financial stability risks, especially amid rapid AI development and related debt-fueled investments. A review will assess whether these proposals might create stability gaps before final adjustments are made.

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