The Bank of England's Prudential Regulation Authority (PRA) is consulting on raising the retail deposits leverage ratio threshold, a move designed to allow smaller lenders to avoid the leverage rules which cover the country's major banks.

Simply sign up to the UK financial regulation myFT Digest -- delivered directly to your inbox. The Bank of England has proposed lifting the size threshold that restricts how much British banks can borrow to fund their activities,

UK banks would be able to have as much as £70 billion in deposits before being subject to a cap on their leverage under a new proposal from the Bank of England.