The PRA have released a document containing UK bank and building society capital shortfalls. Currently, RBS is short £13.6bn, Lloyds Banking Group £8.6bn, Barclays £3bn, the Co-op bank £1.5bn and Nationwide £0.4bn.
RBS have released a statement in response:
As indicated in its earlier release, dated 22 May, RBS expects to continue to improve its Core Tier 1 capital ("CT1") ratio during 2013 through continued delivery against its established business plan.
RBS continues to target a 'fully loaded' Basel 3 CT1 ratio of around 9% by year end 2013, after including the provision of capital to fund anticipated future loan growth.
It's worth noting that Lloyds is the only stock up on the FTSE this morning following George Osborne's announcement at the Mansion House meeting that it was ready to return to the private sector. James Barty of Policy Exchange tweeted the following:
#Lloyds is up because the government selling its stake removes some of the political risk premium. That premium in RBS is much bigger.— PX Finance (@PXFinance) June 20, 2013
The capital shortfall figures were not mentioned during the Mansion House speeches, although Osborne did say he would be looking into breaking up RBS – a move that has sparked much controversy.
But economist Gerard Lyons says the figures are certainly not disastrous.
UK bank capital shortfall news just out not too bad. £27.1B gap under stress test. 1/2 feared last autumn & 1/2 already raised.— Gerard Lyons (@DrGerardLyons) June 20, 2013