LONDON -- The Bank of England in September considered, but shied away from, relaxing tough new rules governing banks' balance sheets in an effort to spur lending.

Minutes published Monday of the Sept. 20 meeting of the BOE's Financial Policy Committee showed policy makers discussed whether banks' capital or liquidity ratios should be loosened to support the supply of credit to the wider economy--although they ultimately judged such a move "inappropriate" at the current time.

Relaxing capital or liquidity requirements could spook investors and may not lead to more lending, committee members said.

Instead, the committee recommended banks do whatever they can to bolster their capital and liquidity buffers to shield them from further shocks.

The committee said "severe strains" in financial markets caused by the euro-zone sovereign debt crisis were making it harder for banks to raise funds.

Although less directly exposed to troubled euro-zone nations than their European counterparts, U.K. banks could face problems if those lenders ran into trouble, the committee said.

The FPC was set up in an overhaul of U.K. financial regulation. It is charged with ensuring financial stability, and currently has an advisory role pending the passage of legislation granting in full powers in 2013.

-By Jason Douglas and Geoffrey T. Smith; jason.douglas@dowjones.com; +44 (0) 20 7842 9272