King: UK banks may need further £35bn to protect against future losses

The UK's four biggest banks may need up to £35bn of fresh capital to insulate themselves against future losses, according to the Bank of England.

In its Financial Stability Report, released today, the Bank said the largest UK banks - Barclays, HSBC, Lloyds and RBS - may need to boost their capital ratios by between £5bn and £35bn. "UK banks currently report substantial buffers over the minimum level allowed," said Bank governor Sir Mervyn King in a speech unveiling the report. "But, in judging whether banks are adequately capitalised, we need to ensure that reported capital ratios do in fact provide an accurate picture of banks' health. At present there are good reasons to think that they do not." King added banks could be u...