United Kingdom Banks: First look at Bank of England Financial Stability Report

Research evidence excerpt

United Kingdom Banks: First look at Bank of England Financial Stability Report

Equity Research

7 July 2026 | 1:39PM BST

United Kingdom Banks: First look at Bank of England Financial Stability

Report

The Bank of England (BoE) has today (7 July) published its Financial Stability Report, Benjamin Caven-Roberts

+44(20)7552-7066 | benjamin.d.caven-

which includes an assessment of bank capital requirements. roberts@gs.com

Goldman Sachs International

The CCyB (countercyclical capital buffer) remains unchanged at the neutral rate of Chris Hallam

+44(20)7552-2958 |

2%, however the FPC notes that the previous increase in the CCyB in 2019 (from 1% chris.hallam@gs.com

to 2%) led to unintentional effects (such as the leverage ratio requirement becoming

Sofie Peterzensthe binding constraint rather than a backstop for several UK banks, following a +44(20)7051-5283 |

decline in average risk weights), and thus various reforms to leverage requirements sofie.peterzens@gs.comGoldman Sachs International

have now been proposed to correct this, including: Andin Kour Sason

+1(332)245-7825 | andin.kour@gs.com

Goldman Sachs India SPL

n CCLB (countercyclical leverage buffer) to be removed entirely.

Sachin Nayar

n ALRB (additional leverage ratio buffer), which currently corresponds to 35% of a +44(20)7051-2598sachin.x.nayar@gs.com|

firm’s individual systemic risk buffer (either G-SII or O-SII), to be scaled up to 50% Goldman Sachs International

(in line with international standards). Khushboo+1(332)245-7978Mandani|

khushboo.mandani@gs.com

These two combined measures correspond to ‘Scenario D’ outlined in our recent Goldman Sachs India SPL

Eraldo Bausanonote (see: Assessing potential changes to the UK leverage ratio, June 2026), which implies +44(20)7774-9801 |