TheCountOfNowhere Posted June 20, 2013 Share Posted June 20, 2013 (edited) http://www.bbc.co.uk/news/business-22982311 "UK banks need to raise billions more in capital to cover their risks, according to the financial regulator" "Royal Bank of Scotland was the regulator's main cause of concern, accounting for £13.6bn of the total. Lloyds Banking Group accounted for £8.6bn and Barclays £3bn. Nationwide had a small shortfall of £400,000. Co-operative Bank has already identified a £1.5bn hole in its finances and announced a bond-to-equity 'bail-in' plan to deal with the shortfall. " "The PRA concluded that, as at the end of 2012, Barclays, Co-op, Lloyds, Nationwide and RBS "fell short of this standard"." According to Reuters, the Nationwide £400K is £400Million, which would make more sense. http://uk.reuters.com/article/2013/06/20/uk-britain-banks-capital-shortfall-idUKBRE95J05K20130620 Maybe they need to raise interest rates and encourage savers!!!! Edited June 20, 2013 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted June 20, 2013 Share Posted June 20, 2013 Still it's only the balance sheet. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 20, 2013 Author Share Posted June 20, 2013 Quote Link to comment Share on other sites More sharing options...
koala_bear Posted June 20, 2013 Share Posted June 20, 2013 Peston on the R4 today programme @ 0805 indicated that Barclays and Nationwide felt a "bit" miffed as they were the 2 biggest genuine users of FLS and actually increasing lending to individuals and small businesses which had actually left them needing to increase more capital than they otherwise would... and it would have been better for them to shrink lending. Peston has now his piece: http://www.bbc.co.uk/news/business-22983363 It can achieve the effect of meeting the new target by shrinking lending, and selling assets. And I understand the bank is hopeful that it can do what the PRA wants without too much strain. I understand that both Barclays and Nationwide feel a bit miffed about being forced to hit this tough so-called leverage ratio at this juncture, because they are rare in that they have been supporting economic recovery by increasing their net lending.They now feel they are being penalised for doing what the government wants. So I would expect there to be something of a spat between government and regulators about all this. There will now be a negotiation on how and when they will raise the necessary equity - but it will be easier for Barclays, with its stock market listing, than for Nationwide as a mutual building society. As it happens, the decision to push through the new leverage ratio is very much in keeping with what the outgoing governor of the Bank of England Sir Mervyn King believes is the sine qua non of strengthening banks. Some will see it as his last hurrah. So it will be fascinating to see if his Canadian successor, Mark Carney, is more or less flexible on this. If Nationwide and Barclays (Woolwich for Mortgages) do less mortgage lending is this the downward trigger caused by a stepped decrease in transactions (they are more than quarter of the market currently.) Nationwide Market mortgage share q1 2013 is 15.1% Barclays Market mortgage share q1 2013 is 12.8% Nationwide seem to have southern bias (propping up southern HPs?) and Barclays a more prime (better LTV etc) and re-mortgage customer orientation. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted June 20, 2013 Share Posted June 20, 2013 (edited) And Lloyds were crowing in a recent results release about hitting target debt/equity ratios. It's been a huge inconsistency in policy, simultaneously telling banks to shape up and splash out, and the drip drip of more capital holes to fill will surely keep things in the mortgage market on the slow downward trend for the forseeable future. Seems this is the preferred route to solvency- bite sized chunks to fill regularly. This will help keep net lending going down, FLS+HTB in the doldrums, and transaction levels low. Edited June 20, 2013 by cheeznbreed Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 20, 2013 Share Posted June 20, 2013 In other news, banks surprised at record mortgage lending in May 2013...the highest since 2008. Now, HAVE THEY GOT SUFFICIENT CAPITAL OR NOT?....If not, they are WORSE off this month than last month. Zee Stabeeleetee is becoming unstable. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 20, 2013 Author Share Posted June 20, 2013 It seems to me the companies listed are the ones promising to lend to 95% of applicants......yet they have no money. Weird. Just saying. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted June 20, 2013 Share Posted June 20, 2013 It seems to me the companies listed are the ones promising to lend to 95% of applicants......yet they have no money. Weird. Just saying. Do we really need capital to have capitalism? Quote Link to comment Share on other sites More sharing options...
billybong Posted June 20, 2013 Share Posted June 20, 2013 Only £27 billion. At least the economy is recovering, well that's what the new lordship and Osborne say. Quote Link to comment Share on other sites More sharing options...
Ah-so Posted June 20, 2013 Share Posted June 20, 2013 It seems to me the companies listed are the ones promising to lend to 95% of applicants......yet they have no money. Weird. Just saying. There's plenty of liquidity. Capital is the thing they are short of. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 20, 2013 Share Posted June 20, 2013 There's plenty of liquidity. Capital is the thing they are short of. indeed, assets and money that actually belongs to them. Quote Link to comment Share on other sites More sharing options...
Unexpected Posted June 20, 2013 Share Posted June 20, 2013 And Lloyds were crowing in a recent results release about hitting target debt/equity ratios. It's been a huge inconsistency in policy, simultaneously telling banks to shape up and splash out, and the drip drip of more capital holes to fill will surely keep things in the mortgage market on the slow downward trend for the forseeable future. Seems this is the preferred route to solvency- bite sized chunks to fill regularly. This will help keep net lending going down, FLS+HTB in the doldrums, and transaction levels low. But strangely LLOY is up today even though its a black day for the markets in general. How so? Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted June 20, 2013 Share Posted June 20, 2013 Carney can print it up. His arm has been well rested since leaving the Canuck press. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 20, 2013 Share Posted June 20, 2013 Carney can print it up. His arm has been well rested since leaving the Canuck press. Are you suggesting the central banks will buy addtional shares? Quote Link to comment Share on other sites More sharing options...
sombreroloco Posted June 20, 2013 Share Posted June 20, 2013 When the bond bubble pops, Mark Carney won't be able to printy printy. It's a matter of when, not if. Quote Link to comment Share on other sites More sharing options...
Ah-so Posted June 20, 2013 Share Posted June 20, 2013 Are you suggesting the central banks will buy addtional shares? Perhaps there should be a bar on posting on capital-related threads unless you can demonstrate an understanding of the meaning of "capital". Quote Link to comment Share on other sites More sharing options...
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