Liquidity plan boost for banks
Bank shares were sharply higher after proposals aimed at ensuring firms can survive a short-term crisis were watered down by regulators.
The initial deadline of 2015 for banks to meet global liquidity standards was put back by four years after institutions argued that they would be restricted from lending to the wider economy.
The Basel Committee on Banking Supervision has also widened the types of liquid assets that will count towards their cash buffers, including some equities and high-quality mortgage-backed securities.
Barclays was the biggest riser in the FTSE 100 Index, lifting 3%, while Lloyds Banking Group, Royal Bank of Scotland and HSBC also improved.