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Regulation will force banks to raise £50bn, experts fear
by Sarah Miloudi on Sep 12, 2013 at 07:55
British banks will have to raise billions in extra capital or slash lending because of the increasing burden of regulation, KPMG has warned.
Experts at the consultancy believe that because the regulatory goalposts have been shifted lenders could soon have to find a further £50 billion in capital.
The alternative would be to cut back on loans such as mortgages and business finance by a fifth, KPMG said, according to The Times.
Banks are already under pressure from governments and City regulators to up their capital buffers against losses and lift lending to help get the economy moving again. Barclays is on Friday expected to launch a £5.8 billion rights issue to meet such demands.
KMPG said that because of the regulatory environment growth was at risk. Its consultants said there was now a trend for 'more and more' rules.
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