According to the Financial Policy Committee, British banks are currently suffering from a lack of capital. The shortage is estimated at £25bn. The financial authority says those banks are going to eliminate the capital shortage by means of attracting funds through restructuring and extra emission of shares.
The regulator has conducted research to find out that banks overvalued their aggregate capitalization by as much as £52bn. However 50% of the sum belongs to banks with considerable capitalization.
The Financial Policy Committee is sure that the risky banks have already found the ways and means to attract 50% of the lacking £25bn. This is expected to take place at the expense of abandoning income distribution along with balance reduction and bonus cuts.
Most of the deficit comes from such major banks as Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc, which were partially nationalized.
The chart below, courtesy of , reflects the current state of affairs in the market of RBS:
