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Page last updated at 10:53 GMT, Thursday, 29 November 2012

'Banks have become uninvestable'

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The Bank of England's financial policy committee meets today to discuss whether banks have enough of a cushion to survive if some of the money they have lent does not get repaid by struggling homeowners or businesses.

Anthony Browne, chief executive of the British Bankers' Association, told Today business presenter Simon Jack that "that banks need more capital".

He went on to say that where this capital is going to come from still seems to be an open question: "Banks have become uninvestable, as banks cannot go and raise lots of equity from share holders as the share prices are on the floor."

"The big question mark is the really unpredictable future shocks, like if the whole of the eurozone collapses... what happens then?"


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