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
'Fifth Estate' questions CBC's Ghomeshi probe
Protests temporarily close malls, shut down trains
S and P upholds rating, confident province will balance books
Selinger sidesteps questions on rules for leadership race
Winnipeg Airports Authority's debt soars to $646.3 million
Hutchinson stands out in Jets' overtime loss
Teen who killed party-goer with punch avoids jail
Police looking for a suspect in an alleged road rage incident that left a man dead
Bowman to attend Grey Cup, promote Winnipeg as a tourist destination
When pigs fly? Not on this US Airways plane
Doug & Buck gear up for Grey Cup
Harper announces $500 million vaccination aid
Water problems not linked to frozen underground lines, city says
Police seek help in finding teen last seen in Fort Rouge
Key of Bart: Let It Blow
Officer gets 6-day suspension for pushing woman
Black Friday gets a little less frenzied
Agreement ends standoff at Jenpeg station
Winnipeg man jailed for assaulting girlfriend, off-duty officer
Expanded powers for conservation officers
Bowman to introduce proposals next week to keep campaign promises
RCMP arrest Norway House man and woman after finding drugs, cash
City considers annual review for CAO
Guay Park riverbank cash not lost, but project's future unclear
Winnipeg shoppers hope for Black Friday deals
Manitoba Music director leaves to launch record-label expansion
Snow-route parking ban begins Monday
Polar bears return to enclosure
Japanese paper regrets use of term 'sex slaves'
Hospital says Pele's condition is improving
Adult sentence sought for youth in assault case
Oswald says she's being wooed
Thalidomide survivor hopes ongoing help around the corner
Earthling to touch down in city
Battery-powered bus to hit city streets
Man arrested after multiple stabbings
New community-mailbox sites in St. Vital
As holiday season approaches, multiplexes start to fill with cinematic gifts
Michael Hutchinson: the comeback kid
Ticats DB Stewart recalls icy reception