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Nationwide to raise £500m through “normal channels”

Nationwide has pledged to increase capital by £500m through normal market channels.

The building society, along with seven banks, agreed to increase capital collectively by £25bn last week as part of the Government’s measures to shore up the banking system.

But Nationwide said today it is a well-funded organisation with a robust and strongly capitalised balance sheet.

The building society says its tier one capital ratio of 9.7 per cent is above the requirements under the UK Government’s banking sector scheme announced last week and one of the highest in the financial services sector.

In a statement today it said “We have no current need for additional capital. However, given our support for the Government’s initiative to stabilise market conditions, we have agreed to an increase in our capital base of £500 million. This is a prudent step, which reflects unprecedented market conditions.

“It is our intention to raise this additional capital through normal market channels between now and our financial year end.”

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