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Five of Britain's biggest lenders have raised half the money needed in reserve to cover their risks,with Barclays, Lloyds Banking Group and Royal Bank of Scotland accounting for more than 90% of the shortfall, the City regulator revealed:
- State-backed RBS must raise £13.6 billion
- Tax-payer owned Lloyds needs to boost its balance sheet by £8.6 billion
- Barclays needs to find £3 billion
- The Nationwide building society is facing a £400 million shortfall
- The Co-operative's shortfall of £1.5 billion had already been announced
HSBC, Standard Chartered and Santander UK do not need to bolster their capital cushions, the PRA said.
The Prudential Regulation Authority has revealed a £27.1 billion capital shortfall among at five banks.
In March, the Bank of England warned they would need to raise £25 billion to protect themselves against a "black hole" as big as £50 billion.
The "black hole" is the shortfall in the banking sector's reserve funds that are needed as a cushion against future crises.
A capital shortfall of £27.1 billion has been identified at eight UK banks, the Prudential Regulation Authority (PRA) said.
- RBS has a shortfall of £13.6 billion
- Lloyds has a shortfall of £8.6 billion
- Barclays has a shortfall of £3 billion
A capital shortfall of £27.1 billion has been identified at eight UK banks, the Prudential Regulation Authority said.