Bank stands ground in lending row

The Bank of England was put on the defensive once more over demands forcing lenders to boost their balance sheets after delays to Nationwide's small business banking launch were linked to the new rules.

Britain's biggest building society is understood to have put on hold plans to lend to small and medium-sized enterprises (SMEs), with a report in the Financial Times suggesting the move comes as it battles to meet tougher requirements for it to hold more capital as a buffer against financial crises.
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