S&P warns on UBS and Citi's capital

City A.M. Reporter
MOST BANKS are weakly capitalised, with Citigroup, UBS and Mizuho Financial Group more than two-thirds below the average, according to a study by rating agency Standard &amp; Poor&rsquo;s.<br /><br />S&amp;P yesterday released the first global comparison of risk-adjusted capital (RAC) adequacy for the world&rsquo;s 45 top banks, aiming to more consistently capture credit risk.<br /><br />&ldquo;The results to date appear to confirm our view that capital is a rating weakness for a majority of banks in our sample,&rdquo; S&amp;P said in its report.<br /><br />S&amp;P said the global average for its RAC ratio was 6.7 per cent at the end of June, but Citigroup&rsquo;s RAC was 2.1 per cent, UBS&rsquo;s was 2.2 per cent and BBVA&rsquo;s was 5.4 per cent while Mizuho had a ratio of just two per cent.