BoE Says U.K. Banks Need More Capital Held Against Losses

“Bank of England Governor Mervyn King said U.K. banks are understating the capital they need to hold against potential losses, and said regulators should ensure measures are taken to provide “accurate” valuations.

“In judging whether banks are adequately capitalized, we need to ensure that reported capital ratios do in fact provide an accurate picture of banks’ health,” King told a press conference inLondon today. “At present, there are good reasons to think that they do not.” ”

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