The Prudential Regulation Authority has told some of the major UK banks they need to raise another £13.4bn in order to meet its standards for the amount of capital on their balance sheets.
The new regulator said it had identified a £27.1bn shortfall at five banks; Barclays, Co-operative Bank, LBG, Nationwide and RBS, at the end of 2012, and that only £13.7bn had so far been set aside as cover.
The regulator has called on the banks to “submit plans for additional actions” in order to meet this shortfall.
Lloyds Banking Group was the worst offender, needing to raise another £7bn in order to reach the risk-weighted capital requirements put in place by the Basel III rules.
The bank today responded to the PRA report by saying that it had raised another £4.2bn since the regulator’s study concluded and that it was confident it would meet the further £2.8bn requirement through both cash generation in its core businesses and further disposals.
