UK banks to be warned over capital

The Bank of England is expected to tell the UK's banks they must raise more capital to absorb potential future losses.

It is the newly-created Bank of England's Financial Policy Committee (FPC) first big intervention since being set up by Chancellor George Osborne.

Under new rules, the FPC will tell banks as a whole to raise a specific amount of new capital.

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Bank sector's £25bn 'black hole'

The banking sector has to fill a £25 billion "black hole" in its reserve funds that are needed as a cushion against future crises, the Bank of England has warned.