Sunday, June 23, 2013

British banks face £27bn shortfall

UK regulator identifies £27.1 billion bank capital deficits.
Britain™s top banks must plug a £27.1 billion hole in their finances, with Royal Bank of Scotland (RBS) facing the biggest shortfall, a City regulator has revealed
According to the Prudential Regulation Authority (PRA), Barclays, Lloyds Banking Group and RBS failed to hold the required capital of at least 7 percent of their risk-weighted assets and, therefore, need to raise £27.1 billion in capital to cover the risk of loans.
According to reports, the three banks account for more than 90 per cent of the shortfall, with RBS being the biggest cause of concern accounting for £13.6 billion of the shortfall.
Lloyds’ and Barclays shortfall amounted to £8.6 and £3 billion respectively.
Responding to the report, Lloyds said the bank had a “strong capital position and that it expect to have a Core Tier 1 ratio of above 9 percent by end of June.
RBS also said it “continues to target” a figure of 9 percent by the end of 2013, while Barclays feels confident it can plug its £3 billion gap through disposals.
MOS/HE
This article originally appeared on: Press TV

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