Mark Carney, Governor of the Bank of England, confirmed in a speech that the Prudential Regulation Authority (PRA) Board will implement the June 2013 recommendation of the Financial Policy Committee (FPC), which will reduce the level of required liquid asset holdings. The decision addresses the scope for these held liquid assets to be lent to the real economy. The new liquidity standard will apply to major UK banks and building societies meeting the 7% equity capital standard set in the recent PRA exercise.