UK supervisor warns banks over telecom exposure

Britain's financial regulator on Thursday intensified pressure on banks to display vigilance in managing their multi-billion dollar exposure to the telecom sector.

The Financial Services Authority (FSA) sent letters to the heads of 34 banks after a two-month review found that 40% of group capital and 5% of assets among UK commercial lenders was owed by the telecom sector.

The FSA's announcement highlights fears shared by other European regulators that loans to fund third-generation mobile pho