The Canadian Press - ONLINE EDITION
Posted: 03/27/2013 5:00 AM | Comments: 0
Last Modified: 03/27/2013 5:51 AM
LONDON - Britain's new banking regulator recommended Wednesday that the nation's lenders increase their capital buffers by 25 billion pounds ($37.9 billion) by the end of the year to ensure they can cover potential losses and keep lending in the event of future crises.
The Financial Policy Committee said banks need the money is needed as a buffer against potential costs of high-risk loans, including those in the eurozone, and of resolving scandals — such as the mis-selling of insurance products, which has forced British banks to pay billions in compensation to customers. The banks also need greater rainy-day funds in case they have to write down the value of their investments.
Some banks already have adequate resources and those that don't should either sell shares or restructure their businesses. The aim is to have capital equal to at least 7 per cent of higher-risk assets by the end of this year, the committee said. It did not name any banks, or single out the ones that need more capital.
The committee, which is part of the Bank of England, also recommended applying higher capital requirements to any major British bank or building society with exposure to particularly weak investments.
The committee was set up to regulate the health of the banks following the 2008 financial crisis.
Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.
Having problems with the form?Contact Us Directly
Potential measles exposure locations released
Storm raises flood concerns
In the Key of Bart: Can’t It Be Nice This Time?
Olympic medallist Kevin Martin retires
Rocket man Hadfield flies paper planes
Captain of sunken S. Korean ferry, 2 crew arrested
Boston prepares for huge wave of marathon visitors
What's open, what's closed over Easter weekend
White House on deport Bieber petition: No comment
Restitution ordered over dead, dying reptiles
Motivated LeBron preps for the playoff grind
Future premier defends anti-abortion beliefs
Dutch man's case linked to Amanda Todd