FPC announces leverage ratio requirement for banks of 4.05%

UK banking stocks reacted positively on Friday to new rules from the Financial Policy Committee, which require the country's largest lenders to have a leverage ratio (non risk-weighted) of 4.05%.

This was the lower end of the 4-5% threshold expected by the market.

RBS was up 5.1%, Barclays jumped 7.2% while Lloyds rose 2.3% initially after the news in afternoon trade.