Bank of England Accused of Ignoring Wall Street's Funding Advantage

UK lenders have accused the Bank of England of ignoring the capital edge that Wall Street has over British banks.

A report by the Financial Policy Committee, which is part of the Bank of England, found that US lenders have a significant advantage when it comes to raising funds.

The committee's analysis shows that US banks can raise more than 90% of their funding from sources other than deposits, compared with around 40-50% for UK banks.

This means that US banks are less reliant on depositors and have more flexibility to invest in riskier assets.

UK lenders argue that this puts them at a disadvantage when competing with Wall Street for investment and talent.