Bank Of England Issues Warnings To UK Banks

The bank of England has issued the warning to UK banks about the continual financial issues in the Eurozone.

The Bank of England has stated that the bi-annual financial stability report has suggested keeping a very close eye on the financial power of European lenders and it needs strict measures to move along.

The UK banks have also been advised to raise the capital by paying low hand-outs and surplus in order to absorb the losses and the Bank of England has also showed its concerns over the anticipation of the UK banks regarding housing market downfall.

The bank of England has stated in the latest financial stability report that “It is in banks, collective interest to build resilience gradually through retention of earnings, which would be boosted if banks restrain distribution of profits to equity holders and staff.”

According to the statistics, UK banks are having £500 billion debts for the refinancing in the near future and £200 billion out of total £500 billion are provided by the bank of England and the Treasury as the emergency facilities.  

The Bank of England has also emphasized that there is a great need of a complete, comprehensive and appropriate financial solution of the current situation that directly affect the Eurozone.

The Bank of England has issued the statement in response to the European Union leaders, who decided to establish a long-term system to bail out any state member who financial condition threatens, the other 16 nations.   

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Posted by P.Jeanelle on Dec 17 2010. Filed under Business, Europe, Featured News, Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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