LONDON (Reuters) - The Bank of England plans to reverse a decision to increase banks' capital requirements because of the expected hit to Britain's economy from last week's European Union referendum, Bloomberg News reported on Friday.


A spokeswoman for the BoE declined to comment on the report.


The BoE's Financial Policy Committee is to issue a six-monthly report on Britain's banking sector on Tuesday, and met earlier this week to make policy decisions.


The Bank said in March it would raise the so-called counter-cyclical buffer (CCB) for banks from March 2017.


(Reporting by William Schomberg, editing by David Milliken)