UK banks could be under further pressure to curb lending after the G20 drafted rules to force them to bolster balance sheets by as much as £130bn.
Leaders at the Toronto G20 summit agreed in future banks should keep enough capital on their balance sheet to have withstood the aftermath of Lehman Brothers' collapse in 2008, the Telegraph reports. Britain's banks will have to permanently bolster their balance sheets by as much as £130bn - equivalent to £5,200 for every household in Britain. Under the previous international banking accords, banks were obliged to hold only 8pc of safe capital on their books to provide a buffer against insolvency. However, the new rules sketched out at the Canadian summit threaten to go further. Th...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes