U.K. BANKS NEED FRESH CAPITAL QUICKLY ACCORDING TO BANK OF ENGLAND

Bank of England says British banks need fresh capital

British banks have a new regulator, the Financial Policy Committee

23 March 2012 Last updated at 10:18
http://www.bbc.co.uk/news/business-17486126

British banks needs to raise fresh capital as soon as feasible, according to a new Bank of England regulator.

Although banks have been bolstering their finances, they still do not have enough funds in reserve to withstand potential financial trouble, the Financial Policy Committee (FPC) said.

The FPC said it would review progress made by banks at its next meeting in June.

Next year, the FPC will gain legal powers to order banks to take action.

The FPC has now gone into more detail about the powers it would like to have.

It would like to be able to order banks to raise or lower their capital buffers.

It would also want the power to tackle specific parts of the economy, to snuff out potential problems.

For example, it could act over commercial property investment if it thought there was a bubble developing in that market.

Finally, the FPC would like to be able to introduce limits to the amounts banks can borrow as a proportion of their assets.

One comment

  •  
    The banks in Britain are totally bankrupt if the truth is known, the whole banking system is broke Globally and its about time people woke up to the fact. Only in February all the European banks had to be bailed out on the sly via the Federal Reserve of New York through The Toronto-Dominion Bank Group in Ontario, Canada then into the European Central Bank run by Knight of Malta, Mario Draghi. Deutsche Bank alone has $751 billion of debt exposure to the Eurozone PIGS crisis.

    -= The Unhived Mind

    European Central Bank provides cheap Emergency Loans for collapsing banks
    http://theunhivedmind.com/wordpress/?p=24196

    BARCLAYS TAKES A ECB EMERGENCY LOAN OF 8.2BN EUROS COURTESY OF THE FEDERAL RESERVE $1.6 TRILLION X-MAS LOAN
    http://theunhivedmind.com/wordpress/?p=24334

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