Barclays, RBS and Lloyds shares have all rocketed today on news the Basel Committee plans to water down its capital and liquidity reform package.
The banking boost has helped push the FTSE up 1% to 5404.58 as banks welcomed the less draconian set of rules and a longer phase in time for the reforms.
Barclays was head of the pack up 9.06% to 344.25p while RBS rose 7.67% to 50.25p and Lloyds increased 7.58% to 71.00p.
Other financials also benefited with Prudential rising 5.13% to 555.50p and Aviva up 3.97% to 369.20p.
The strong showing for the banks came despite business secretary Vince Cable warning today the Government would be carefully scrutinising their bonuses and dividend payments in a bid to ensure spare capital is used to kick-start consumer lending.
Amongst the losing shares on the FTSE today was hotel operator InterContinental Hotel Group down 85 points (2.27%) to 1114.00p.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
Senior Managers Regime
Interest rate outlook unchaged
FCA made demands last week