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Small UK lenders set to escape leverage ratio ratchet

BoE’s planned economic indexation of tougher prudential thresholds could ease capital planning

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Industry sources say the Bank of England’s commitment to automatically adjusting regulatory thresholds could eliminate uncertainty in small banks’ capital planning.

“I’ve been calling for this for over a decade,” says Andrew Turvey, chief risk officer at Dudley Building Society. “It’s a logical fix and I think they should always have been doing it.”

Dudley is a UK lender with total assets amounting

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