27.03.13
Extra capital needed to guard against losses – BoE
Banks will need to raise £25bn in extra capital by the end of the year, the Bank of England has warned.
The BoE’s Financial Policy Committee (FPC) – part of the new order of regulation designed to keep closer scrutiny in banks – has stated that the money is necessary to guard against potential losses.
Banks could face losses of £50bn over the nest three years, it warned.
The order is the first issued by the FPC since it formally gained powers last year. The need to raise more capital could delay plans to sell the stakes back to private investors.
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