Easy FPC

22 May 2013 By George Hay Follow @gfhay

In November, the Bank of England said lenders faced a 50 bln stg capital hole. Now Lloyds doesn’t even have to raise new capital. Assuming soft treatment for RBS, UK banks are getting an easy ride compared to continental peers.

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Royal Bank of Scotland and Lloyds Banking Group both said on May 22 that they would not have to raise new capital or contingent capital but could meet capital requirements by restructuring their businesses and growing capital organically.
RBS said it would continue to change the size of its Markets division, dispose of non-core assets and partially list its U.S retail arm. The bank added it was making assumptions as to RBS profitability and regulatory capital model developments ahead of Basel III rules in Europe becoming effective.
RBS and Lloyds shares were up 2.6 and 2.1 percent respectively at 1140 GMT on May 22.

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