Bank of England Breaks with Basel, keeps 20% CCF for Trade Instruments

The Bank of England has reversed course from its plan to increase capital requirements for trade finance instruments, such as guarantees and standby letters of credit. Initially proposed to rise from 20% to 50%, the change was halted after feedback and data suggested that the original proposal was too conservative. This move departs from the Basel Committee on Banking Supervision but brings the UK's regulatory stance in line with the approach taken by the European Union.