The BoE has raised concerns over plans to cut the capital requirements of specialist trading firms, the FT reports; BoE officials are worried they could increase financial stability risks by making firms less able to withstand a crisis

The BoE's caution regarding potential cuts to capital requirements for specialist trading firms signals a significant concern about financial stability risks. This stance suggests that the BoE is prioritizing the resilience of financial institutions, which could impact market sentiment and lead to heightened scrutiny on regulatory changes in the sector.