Lloyds has been assessed by the UK's Prudential Regulation Authority
Lloyds Banking Group has sold off some £500m in assets as it seeks to meet tougher regulatory requirements.
It disposed of its German life insurance business, Heidelberger Leben, for 300m euros (£257m; $403m).
It raised £254m by selling to US broker Goldman Sachs some high-risk loans to UK retailers and manufacturers.
In June, Lloyds was told by the Bank of England that it still had to increase its provisioning against potential future losses by a further £8.6bn.
The Bank's Prudential Regulation Authority has attracted controversy by demanding a steep rise in capital ratios by all of the UK High Street lenders.
Lloyds said that the sale of Heidelberger Leben would increase its "common equity tier-one capital" - one of the risk measures closely watched by regulators - by about £400m, while the loan disposals to Goldman would also make a "small" contribution to its risk ratios.
Heidelberger Leben is being sold to a consortium of private equity investor Cinven and the German insurance group Hannover Re.
The company, which employs some 300 people, owned about 600,000 life policies and 5.2bn euros of investments as of the end of last year.
The sale of Heidelberger Leben is expected to result in a 330m-euro loss for Lloyds, which had valued the insurance company more highly in its balance sheet than the sale price it was able to obtain.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23777497#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
