The Bank of England has made amendments to the way banks hold capital above the mandatory minimum , creating a mandatory buffer which must be determined by a bank 's performance in the annual stress test for major lenders . The Prudential Regulatory Authority will judge a bank 's risk management and governance , and if it considers it to be weak , it will raise the buffer to cover the risk until the weakness is dealt with .
The Bank of England has made changes to the way banks hold capital above the mandatory minimum, creating a mandatory buffer which will be determined by a bank's score in the annual stress test for major lenders. The Prudential Regulatory Authority will judge a bank's risk management and governance, and if it deems it to be weak, it may raise the buffer to cover the risk until the weakness is dealt with.