Britain’s banks have plans to raise nearly £14 billion by the end of the year to plug a black hole in their balance sheets, the regulator said today.
The Prudential Regulation Authority said that the aggregate
capital shortfall at British banks at the end of last year was
£27.1 billion, higher than the £25 billion estimate in March.
''Britain's banks still have too little capital'', Mr. King said.
"There is clearly some way to go before we can claim to have a really well-capitalized banking system."
Mr. King said the global economy remains plagued by economic imbalances and warned recovery is likely to be "a bumpy ride."
He ''urged bankers and policy makers not to forget the lessons of the crisis and to press on with reforms''.
"We cannot be complacent. As the memories of the crisis fade, and those who saw it at firsthand retire, it is vital that the 'audacity of pessimism' is not lost," Mr. King said.
