UK banks told to raise £13bn to plug hole in finances

UK banks need to raise billions more in capital to cover their risks, the regulator has said.

Having carried out a review of the banking sector, the Prudential Regulation Authority (PRA) has told Britain's top banks and building societies they need to raise £13.4bn to plug an ongoing shortfall in their finances. Banks have taken action to remedy the situation, having been staring at a £27bn hold in their funding at the end of 2012, but they must do more, the PRA has said. Royal Bank of Scotland has always been the regulator's main cause of concern, having accounted for £13.6bn of the total £27bn shortfall. It has put in place plans to raise £10bn. The bank, which may yet be sp...