Bank of England tells banks to use excess capital to help customers

British banks should use their substantial capital and liquidity buffers to support the economy hit by the coronavirus pandemic, the Bank of England said on Monday. The BoE's Prudential Regulation Authority (PRA) said it expects banks to focus on continuing to support customers.

"Banks are expected to use their liquidity buffers in doing so, even if it means liquidity coverage ratios go significantly below 100%," the PRA said in guidance to lenders. The PRA said they would give lenders sufficient time after the crisis to replenish their liquidity and capital buffers.