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BoE will tell banks to raise tens of billions in extra capital

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Banks are expected to be told they need to raise tens of billions in extra capital in a report by the Bank of England’s financial policy committee published later today, according to a BBC report.

Last November the Bank of England suggested as much as £60bn more capital may be required to guard against future losses.

The capital-raising could delay the return of taxpayer-owned banks, the Royal Bank of Scotland and Lloyds Banking Group, to the private sector.

It could also hit business lending and mortgages as banks are forced to put more cash and safe assets aside as a buffer.

Earlier this month the European Union passed CRDIV to impose Basel III capital rules on member states.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. One step forward two steps back as usual.

    This will hamper the introduction of further high LTV mortgage deals as that too will push the reserve requirement even higher

  2. And in the same breath tell them to lend more no doubt.

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