Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, whether his Department has assessed the potential merits of introducing a green supporting factor to address prudential rules on capital weighting.

The Government is considering the potential merits of introducing a green supporting factor into the UK bank capital framework.

Prudential rules on capital weighting ensures the banking sector’s resilience against financial stability risks and are derived from agreed international standards for internationally active banks. Any changes to the framework must not undermine financial stability by creating unnecessary risks.