Thursday, March 28, 2013

UK banking capital gap 25 billion Royal Bank of Scotland topped

Informed sources said that the newly established Financial Stability in the United Kingdom regulatory agencies identified in the UK banking sector £ 25 billion capital shortfall in the two part nationalized banks accounted for 20 billion pounds.

Financial Policy Committee announced on Wednesday that UK banks Total overestimate capital of 52 billion pounds, the agency had the use of a more stringent risk metrics and conducted a review of the balance sheets of these banks, and included in future fines and expected loss. Included in the bank's existing capital buffer capital gap valuation dropped to 25 billion pounds, lower than the earlier concerns of some investors. However, the gap must be filled before the end of 2013, faster than expected.

Most of the concentration of capital gap in the Royal Bank of Scotland and Lloyds Banking Group, the former 82% stake held by the taxpayer, the latter 39% stake held by the taxpayer.

Regulatory authorities that the measures taken by the Bank is currently maintaining profitability, reduced balance sheet, and cut bonuses, has to fill the shortfall of 12.5 billion pounds, half of the total industry funding gap.

Royal Bank of Scotland, according to two people familiar with a net shortfall of nearly 6 billion pounds, Lloyds Bank, compared with less than 3 billion pounds.

These two informed sources added that Barclays's net gap in the third, to less than 2 billion pounds.

Bank of England Governor, Financial Policy Committee Chairman Sir Mervyn • Gold (Sir Mervyn King) said these capital gap does not mean the Royal Bank of Scotland or Lloyds Bank to inject more public funds. In November last year, the British government made it clear that is not prepared to provide more taxpayer funds.

Mervyn also weaken the damage caused by this capital gap. He said: "financial policy committee today to determine the capital gap will not pose a direct threat to the banking system, this problem is completely controllable."

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