Bank of England proposes rules to boost crisis liquidity

The Bank of England proposed rules to help banks access cash faster during stress. The plan focuses on asset usability rather than increasing capital holdings.

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The Bank of England has published a series of new proposals designed to ensure that financial institutions in the United Kingdom can maintain liquidity during periods of extreme market stress. The measures focus on the ability of banks to quickly convert their liquid assets into cash, rather than simply increasing the total volume of reserves they are required to hold.

A general view of the Bank of England building in London, Britain, as seen in May 2025. REUTERS/Carlos Jasso
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