No more light-touch regulation in the U.K.: the Financial Services Authority is forcing banks to...

|By:, SA News Editor

No more light-touch regulation in the U.K.: the Financial Services Authority is forcing banks to hold £150B of "Pillar 2 buffer" capital on top of the £186B needed under Basel rules. The additional amount is much higher than the £20B required prior to the financial crisis. The FSA's Andrew Bailey tells the FT that the extra cushion allows regulators to experiment with ideas to encourage lending.