Bank sector's £25bn 'black hole'
The banking sector has to fill a £25 billion "black hole" in its reserve funds that are needed as a cushion against future crises, the Bank of England has warned.
Extent of 'banking black hole' to be revealed
The Bank of England's new Financial Policy Committee is set to announce the extent of the missing billions from the UK banking sector.
The ‘banking black hole’ is made up of toxic loans that the banks will never see repaid, underestimates of how much compensation banks will have to pay for past mistakes, or costs not yet fully understood from new rules and regulations.
At the end of December 2012, the Governor of the Bank of England suggested the banking black hole was as big as £60 billion - almost as much as the bail-outs for RBS and Lloyds.
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The Bank of England's 'black hole' number crunching
The Bank of England has crunched its numbers and worked out the banking sector needs to fill a £25m 'black hole' in its reserve funds.
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The banks' 'black hole' is revealed
The Bank of England's new regulator has just revealed how much danger our banks are still in, and it is not pretty.
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How big is the banking black hole?
The UK's big banks mess is very well documented. The FPC report will help show just how far they are from getting a clean bill of health.