The Bank of England said on Thursday it will ease regulatory requirements for smaller lenders by exempting more firms from detailed reporting on how they would be wound down in the event of failure.
Under the changes, banks with less than £100bn ($134bn) in retail deposits will no longer need to meet the reporting and disclosure elements of the Resolution Assessment Framework — up from the previous threshold of £50bn.
Deputy Governor Dave Ramsden said the move is intended to strike the right balance between financial stability and regulatory burden. “A credible resolution regime needs to be robust, but it also needs to be responsive and proportionate,” he said.
While smaller banks will still fall within parts of the framework used to assess how they could be resolved, they will no longer be required to submit detailed resolution plans to the Bank or publish summaries of those plans.
The central bank also announced it will simplify rules around reporting funds available for bail-ins, as well as how certain capital requirements are measured, reducing complexity for smaller and less systemically important firms.
