Banks told to raise an extra £25bn

The Express features comments from Mark Littlewood

Banks and building societies were yesterday told they must raise £25billion to cushion themselves against further financial shocks but the Bank of England’s move triggered warnings it could hamper economic recovery.

The Bank’s Financial Policy Committee (FPC) said banks were facing a potential £50billion hole in their ­balance sheets because of high-risk lending on UK commercial property, loans to vulnerable eurozone economies and mis-selling costs.

Director general at the Institute of Economic Affairs Mark Littlewood said: “The authorities are now undermining the economy by requiring banks to be safe.”

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