• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

See More

UK body names lenders in £25bn shortfall

Jun 20 2013 10:37 Reuters

(Shutterstock) (Shutterstock)

Related Articles

Outgoing BoE chief calls for bank reform

UK watchdog backs tougher bonus curbs

UK big banks avoid investigation

UK banks told to raise extra capital

UK banks face break-up under new law

UK backs jail time for reckless bankers


London - Britain's financial regulator will on Thursday say capital holes at Royal Bank of Scotland, Lloyds Banking Group and Barclays account for more than 90% of a £25bn shortfall, the Financial Times said.

The shortfall was based on estimates at the end of 2012, and the Bank of England (BoE) said in March about half the total amount it identified was already covered by projected capital accumulation plans.

Analysts say no banks are expected to need to issue new equity.

The BoE had said in March Britain's top lenders needed to fill a £25bn gap in funding by the end of the year and the BoE's Prudential Regulation Authority is due to detail where the shortfalls lie among the top eight banks and mutuals early on Thursday.

RBS will be shown to account for £10bn to £12bn, Lloyds £8bn to £9bn and Barclays £3bn to £5bn, the FT said, citing people familiar with the exercise.

The PRA and the three banks declined to comment.

Last month RBS and Lloyds agreed plans to shore up their capital with the financial regulator.

HSBC, Standard Chartered and Santander UK have long been expected to receive a clean bill of health, based on their strong capital positions.

The Co-operative Bank said last week the PRA had identified a £1.5bn hole, forcing it to restructure and impose a haircut on bondholders.

Nationwide, the UK's largest building society, has a deficit of less than £1bn, the FT said.

boe  |  united kingdom  |  banks


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Top 10 richest musicians of all time

Check out the gallery to find out who they are!


Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote