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
Oswald 'feeling really good' at NDP leadership convention
Shuffling chairs in face of an iceberg
Community discusses Kapyong urban reserve plan
Police HQ flood renovation costs $4.1 million - so far
Winnipeg girl escapes grasp of attacker
Injury could sideline Byfuglien up to four weeks
Live on Sunday: NDP leadership vote
Police asking for 1.9 per cent increase in budget
Five years for man who abused daughter over five years
Police seek help in finding missing woman
Eadie blasts frontage levy as unfair
Gunman blamed shooting on military operations
Sex offender sought by police
Wynne unveils plan to end sexual violence
Wireless spectrum auction raises $2.11B
Provincial ombudsmen express concern over anti-terrorism bill
Pallister compares NDP to Ringling Brothers
Manitoba falls to P.E.I. at Tim Hortons Brier
Committee counts late-arriving delegate ballots from Swan River
Women: The hidden homeless
New trial for convicted killer
Director on hand for Freeze Frame screening of Pim and Pom
Missing St. Laurent teen last seen in Winnipeg
New exhibition explores Nunavut's origins
On the trail of a great white: tracking Lydia
Need for shelter never wanes
Beer with him
Kinsmen seek assurances for city pool
Women's game has even more room to grow
Three charged after drugs found in Portage la Prairie home
Homeless, mentally ill get to work on creativity
Local farming app among finalists in national competition
Myers has adapted quickly; stellar play has been godsend for the Jets
Wilco, Arlo Guthrie to perform at 2015 Winnipeg Folk Festival
Light snow expected, warmer temperatures for the weekend
Another delegate controversy
Finding her home away from home
Sri Lanka suspends work on China-backed resort
Ringling Bros. says circuses to be elephant-free in 3 years
UNESCO calls destruction of ancient Iraq site 'war crime'