iBankCoin
Joined Nov 11, 2007
31,930 Blog Posts

The BoE Orders Five U.K. Banks to Raise $21 Billion

“Five U.K. banks must find 13.4 billion pounds ($21 billion) to plug a 27.1 billion-pound capital shortfall by the end of the year, the Bank of England said.

The five lenders, including Barclays Plc (BARC)Lloyds Banking Group Plc (LLOY) and Royal Bank of Scotland Group Plc (RBS), have already submitted plans to raise half the total, the London-based BOE said in a statement today. Lloyds must plan to raise an extra 7 billion pounds, while RBS and Barclays need 3.2 billion pounds and 1.7 billion pounds of additional capital.

“The challenge for the banks is that they have got many projects going on in the capital space,” Kevin Burrowes, a partner at PricewaterhouseCoopers, said in an e-mailed statement. “Many of those projects compete and some are duplicative. Banks need to align their projects and look at their business as a whole rather than in parts to get to the right capital position.”

The strength of Britain’s banking system is under scrutiny as the government considers selling its stake in Lloyds, which is 39 percent-owned by the state, and splitting up RBS. Chancellor of the Exchequer George Osborne said in a speech in London yesterday that the U.K. government would proceed only “if we get value for the taxpayer.”

Risk Weighted…”

 

Full article

If you enjoy the content at iBankCoin, please follow us on Twitter