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Bank of England loosens capital rules while warning on AI risks

Bank of England in London.
Photo: John Wreford/Getty Images

The proposed reforms aim for simplicity and targeted resilience against modern risks.

The Bank of England’s Financial Policy Committee (FPC), working alongside the Prudential Regulation Authority (PRA), has published a package of proposed reforms to the UK’s bank capital framework, set out in its July 2026 Financial Stability in Focus review and accompanying Financial Stability Report.

The changes are aimed at making the

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