Big UK Banks Facing Stricter Strength Rules
Tuesday, April 28, 2009 19:47
It was reported that the UK’s biggest banks, such as HSBC, Lloyds Banking Group, Royal Bank of Scotland and Barclays, are now forced to hold billions of pounds in extra capital to ward off future economic crises.
According to Financial Times, Mr. Alistair Darling is likely to announce that these ‘too-big-to-fail’ banks should hold more capital than others. The banking White Paper of next month will contain the provision as the Chancellor is said to have decided that splitting up riskier investment banking arms from deposit-taking operations would be too complex.
According to FT, the requirement for much stronger balance sheets from the larger banks reflects their implicit reliance on taxpayer support if they run into trouble. The bigger banks might also have to make larger prepayments into the Financial Services Compensation Scheme when the industry starts to recover.
Related posts:
- Banks Require Further Support
As economic recession bites, the banks in the UK now... - Bankers Bow to Strict Rules on Bonuses
Banks will be subject to strict regulations, in the bonus... - Banks’ Slips
After two days of solid gains for banking shares, due... - Rescued Banks Face Crunch Day
British banks saved by the taxpayers face a day of... - New Banks on the CD Rate List
During these uneasy economic times, there are still no lack...
