BOE wants banks to hold up to £10b more capital in total

London

THE Bank of England set out plans on Tuesday to require banks to hold a total of up to £10 billion (S$21 billion) more capital as they start to lend more freely in a recovering economy, but stopped short of demanding immediate action.

The central bank said credit conditions in Britain had largely recovered from the financial crisis, but warned that asset prices were vulnerable to a big rise in interest rates and emerging market risks, meaning banks needed an extra buffer.