Britain's government bond market could see a significant boost and borrowing costs slashed by over £1 billion annually if the Bank of England eases bank leverage rules. Major lenders are pushing for exemptions on government bonds, estimating substantial increases in gilt demand. However, former regulators warn this could weaken financial safeguards, prompting the central bank to explore alternative regulatory adjustments.

Barclays proposes Bank of England exclude gilts from leverage ratios, potentially unlocking £150 billion in bond demand and saving £2.5 billion annually.

Britain's government bond market could see a significant boost and borrowing costs slashed by over £1 billion annually if the Bank of England eases bank leverage rules. Major…

The Bank of England plans to relax leverage ratio rules for banks, potentially unlocking £150 billion in gilt market demand and saving billions in debt