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Big banks could be forced to hold more capital
The Financial Services Authority chairman, Lord Adair Turner, is currently before the Parliamentary Commission on Banking Standards. Our banking reporter Tim Wallace is following proceedings:
Turner: Big banks could be forced to hold extra capital against mortgage lending because their internal models give them too easy a ride
— Tim Wallace (@Tim_Wallace) February 27, 2013
That would bring them a bit closer to the tougher capital rules facing smaller banks
— Tim Wallace (@Tim_Wallace) February 27, 2013
Turner says new entrants will get 4.5% capital ratio, well below 9.5 or 10% for big lenders. Will need 7% before they pay divis, though.
— Tim Wallace (@Tim_Wallace) February 27, 2013