British banks need more capital, says BoE

British banks do not have enough capital to ensure they surivive if there is another crisis, the Bank of England has said.

The Bank of England's Financial Policy Committee is advising banks to raise external capital to protect against future losses "as early as feasible." In a statement the FPC said: "The Committee remained concerned that capital was not yet at levels that would ensure resilience in the face of prospective risks and noted that the ability to make further progress via greater restraint of cash distributions was limited. "It therefore advised banks to raise external capital as early as feasible". The warning comes despite an improvement in credit conditions as sovereign stresses in Europ...