Job done for banks' capital requirements, says leading Tory
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A former Conservative cabinet minister says it is “job done” for rebuilding bank capital.
Speaking on the BBC Today show this morning, prominent backbench MP John Redwood says for now the banks capital ratios are reasonable and should only be looked at after a full recovery.
He says: “I think the banks have built up their capital assets and we have to say job done, for the time being.
“The capital ratios have gone up from unacceptably low levels in 2007 to perfectly reasonable levels now. As the recovery gets underway we have to say job done for the time being and as the recovery is complete we can re-visit it.”
Redwood’s comments are the opposite of the recommendations of the International Monetary fund and G20 which have both called for banks to raise more capital as a buffer against future crises.
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Readers' comments (3)
milo holmes | 6 Jul 2010 4:00 pm
john redwood opens his mouth again it seems before consulting other cabinet ministers..............
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George Williamson | 7 Jul 2010 11:21 am
John Redwood is spot on. BASEL II is the reason that First Time Buyers with a 10% Deposit are paying circa 6% when Base Rate is 0.5%
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Anonymous | 7 Jul 2010 2:10 pm
Yet again we see reference to interest rate payable of circa 6% being linked to BBR - little wonder that the public do not understand interest rates when a significant number of brokers do not understand how banks and building societies fund their mortgage book.
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