BoE says UK state credit guarantees should limit banks' loan risks

LONDON (Reuters) - The British government's 80% guarantees to banks for emergency coronavirus-related lending to companies should generally reduce the amount of capital banks need to cover their loans, the Bank of England said on Monday."The schemes do not contain features that would render these guarantees ineligible for recognition as unfunded credit risk protection, and the effects of these guarantees would appear to justify such treatment," the BoE said.