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Lloyds leans on Swip for £1.6bn to help plug capital hole
by Alex Steger on Jun 20, 2013 at 15:48
Lloyds Banking Group has moved £1.6 billion from its insurance arm Scottish Widows to group level following the Prudential Regulation Authority’s revelation that the bank faced a £8.6 billion capital hole.
Widows has resolved to pay its parent a dividend of £1.6 billion.
The move follows the announcement by the PRA that the UK’s biggest banks faced filling a combined capital hole of £27.1 billion.
Royal Bank of Scotland was the regulator's main cause of concern, accounting for £13.6 billion of the total, while Lloyds accounted for £8.6 billion and Barclays £3 billion.
Since 2009 Widows has moved £5.3 billion of capital over to its parent. The size of today's payment is not unusual although its timing is understood to be deliberate.
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