This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-22982311
The article has changed 7 times. There is an RSS feed of changes available.
| Version 3 | Version 4 |
|---|---|
| UK banks need to plug £27bn capital hole, says PRA | UK banks need to plug £27bn capital hole, says PRA |
| (about 1 hour later) | |
| UK banks need to raise billions more in capital to cover their risks, according to the financial regulator. | UK banks need to raise billions more in capital to cover their risks, according to the financial regulator. |
| The Prudential Regulation Authority (PRA) says Britain's top banks and building societies need to fill a £27.1bn hole in their balance sheets. | The Prudential Regulation Authority (PRA) says Britain's top banks and building societies need to fill a £27.1bn hole in their balance sheets. |
| Royal Bank of Scotland was the regulator's main cause of concern, accounting for £13.6bn of the total. | Royal Bank of Scotland was the regulator's main cause of concern, accounting for £13.6bn of the total. |
| Lloyds Banking Group accounted for £8.6bn and Barclays £3bn. Nationwide had a shortfall of £400m. | |
| Co-operative Bank has already identified a £1.5bn hole in its finances and announced a bond-to-equity 'bail-in' plan to deal with the shortfall. | Co-operative Bank has already identified a £1.5bn hole in its finances and announced a bond-to-equity 'bail-in' plan to deal with the shortfall. |
| HSBC, Santander UK and Standard Chartered were given a clean bill of health by the regulator. | HSBC, Santander UK and Standard Chartered were given a clean bill of health by the regulator. |
| Further plans | Further plans |
| The Bank of England's Financial Policy Committee had asked the PRA to review the state of UK banks' financial health against new guidelines agreed by international central banks. | The Bank of England's Financial Policy Committee had asked the PRA to review the state of UK banks' financial health against new guidelines agreed by international central banks. |
| These guidelines - known as Basel III - require banks to hold capital resources of at least 7% of their "risk-weighted assets". | These guidelines - known as Basel III - require banks to hold capital resources of at least 7% of their "risk-weighted assets". |
| The PRA concluded that, as at the end of 2012, Barclays, Co-op, Lloyds, Nationwide and RBS "fell short of this standard". | The PRA concluded that, as at the end of 2012, Barclays, Co-op, Lloyds, Nationwide and RBS "fell short of this standard". |
| Since then the banks have taken action to start to fill the gap to the tune of £13.7bn, says the PRA, although some of their proposed measures still need regulatory approval. | Since then the banks have taken action to start to fill the gap to the tune of £13.7bn, says the PRA, although some of their proposed measures still need regulatory approval. |
| Target | Target |
| Even after these actions, four out of five still fall short of the 7% standard, warns the PRA, and are required to submit further plans detailing how they will plug the £13.4bn hole that still remains. | Even after these actions, four out of five still fall short of the 7% standard, warns the PRA, and are required to submit further plans detailing how they will plug the £13.4bn hole that still remains. |
| The PRA expects most of the banks' remedies, which include restructurings and sell-offs, to be implemented by the end of 2013. | The PRA expects most of the banks' remedies, which include restructurings and sell-offs, to be implemented by the end of 2013. |
| Responding to the report, Lloyds said the bank had a "strong capital position" and that its capital adequacy ratio - known in the jargon as Basel III Core Equity Tier 1 capital ratio - would be more than 9% by the end of June, and about 10% by the end of the year. | Responding to the report, Lloyds said the bank had a "strong capital position" and that its capital adequacy ratio - known in the jargon as Basel III Core Equity Tier 1 capital ratio - would be more than 9% by the end of June, and about 10% by the end of the year. |
| RBS said it "continues to target" a figure of 9% by the end of 2013, while Barclays feels confident it can plug its £3bn gap through disposals. | RBS said it "continues to target" a figure of 9% by the end of 2013, while Barclays feels confident it can plug its £3bn gap through disposals. |