The Bank of England (BoE) believes UK banks are not as well capitalised as they appear.
Mervyn King, the BoE governor, said the capital buffers banks are currently reporting – though substantially above the minimum required – are not an accurate reflection of their true strength.
In its Financial Stability Report released today (November 29) the BoE suggested banks may be overstating their capital for three reasons. First, the BoE said that supervisory intelligence and bank disclosures suggested
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