Increased risk reflects deteriorating loan quality, tougher stress test including 4 pct BOE bank rate

Average loss rate of 20 pct for UK consumer lending in 2017 compares with 13 pct in 2016

Banks should factor these expected loss rates into future capital plans

Still expect to raise counter-cyclical capital buffer to 1 pct from 0.5 pct at nov meeting, with effect from nov 2018

New ifrs9 accounting rule will not lead to increased capital requirements for banks