BOE FSR: To cut regulatory buffers, increase bank lending by up to £150m

In its latest Financial Stability report (FSR) published this Tuesday, the Bank of England (BOE) noted that current outlook for UK financial stability is "challenging."

Key Findings from the report:

Current outlook for UK financial stability is "challenging", some brexit risks starting to crystallise

Closely monitoring commercial real estate, reduced investor appetite for UK assets, buy-to-let and fragile market liquidity

Need to reduce any pressure on firms to restrict supply of credit, provision of financial services

Stands ready to take action to ensure capital and liquidity buffers can be drawn on to support lending

Reduces banks' counter-cyclical capital buffer (ccb) to 0 pct from 0.5 pct, with effect until at least June 2017

Lower ccb will reduce capital buffers by 5.7 bln Stg, raise banks' lending capacity by up to 150 bln Stg

Will give insurers more flexibility to deal with sharp fall in market interest rates

Financial policy committee stands ready to take any further action needed to support financial stablity