Skip to main content


November 29, 2012

British banks may need more capital

British banks may not have enough capital to absorb future losses while supporting growth in the economy, the Bank of England warned Thursday.

The central bank, which takes on the responsibility of regulating U.K. banks from the Financial Services Authority (FSA) next year, said an urgent review of capital adequacy was necessary.

“The problem is manageable, and is already understood at least in part by markets,” said BoE Governor Mervyn King. “But it does warrant immediate attention.”

In its Financial Stability Report, the BoE said capital exceeded the minimum required. But the capital could be overstated because banks may be underestimating future losses, arising from the eurozonefor example, as well as taking an overly optimistic view of risk on their books and not recognizing the full cost of past misconduct.


Read full CNN Money article here

In the News


For media inquiries, please contact us at or 202-618-6433.

Contact Us

For media inquiries, please contact or 202-618-6433.

To sign up for our email newsletter, please visit this page.

This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

"* (Required)" indicates required fields

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact or 202-618-6433.


Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today