Daily Junction.mobi portalBusiness · July 12, 2026 · Marcus Vale · 1 min
Banking sector regulatory capital - 2025 Q4. A business report — sourced from Bank of England Statistics.
The Bank of England has published its quarterly statistics on the regulatory capital of the UK banking sector for 2025 Q4, showing that the sector remains well-capitalised and resilient to a range of potential stresses.
The data show that the aggregate Common Equity Tier 1 ratio — the most important measure of bank capital strength — stood at approximately 15.5 percent, well above the regulatory minimum and broadly unchanged from the previous quarter. The leverage ratio, which measures capital against total assets without risk-weighting, was approximately 5.2 percent.
The Bank said the data were consistent with its assessment that the UK banking system has the capacity to absorb losses and to continue lending to the real economy even in a severe economic downturn. The Bank's most recent stress test, the results of which were published earlier this year, found that the major UK banks would remain above their capital requirements in a scenario that included a deep recession, a sharp fall in asset prices and significant trading losses.
The Bank cautioned that the aggregate figures masked significant variation between individual institutions, and that some smaller banks and building societies were closer to their regulatory minima than the large banks that dominate the aggregate statistics. The Bank said it would continue to monitor capital adequacy at both the aggregate and the individual institution level.
![[View image]](/img/banking-sector-regulatory-capital-2025-q4.jpg){kind=link}