Old Lady urges banks to use profits to de-leverage

bank-of-england

The Bank of England on Friday said banks were repairing their balance sheets too slowly and urged them to use excess profits to reduce leverage rather than make bumper bonus payments.

"Banks need to reduce leverage further, extend the maturity of their funding and refinance substantial sums as official sector support is withdrawn. While their profitability is relatively buoyant and market conditions are broadly favourable, banks should take the opportunity to do so. That will reduce the risk of

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