Big UK banks 'need more capital'

14 March 2013

Major British banks require more capital to stabilize their positions in the ongoing weak economic environment.

That is according to Andrew Bailey, the incoming deputy of the Bank of England (BoE), who believes more needs to be done in order to make sure the country's biggest lenders are strong enough to resist any future financial shocks.

While speaking at the Treasury Select Committee yesterday (13 March), Mr Bailey - who is scheduled to present a report on the capitalization of UK banks next week - noted: "I agree there is a need to strengthen the capital position, but I am not going to go into detail."

The official went on to insist that he has not asked the government to put additional funding into either Royal Bank of Scotland or Lloyds Banking Group, but admitted that the process of restructuring these financiers so they can be returned to private ownership should precede the raising of more capital.

By Tony Aynsley

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