LONDON -- The U.K. may need to inject more capital into banks if the economic situation declines and loan defaults rise, the International Monetary Fund said Thursday.
Repeating its warning that the U.K. recovery is likely to be "slow and subdued," the IMF's executive board said the priority is to repair the damage banks have suffered during the economic crisis.
"Substantial further write-downs would result in an erosion of capital buffers and might lead to renewed doubts about the capital adequacy of individual banks," the board said in an annual assessment of the U.K. economy.
http://online.wsj.com/article/SB124777864393853707.html
Repeating its warning that the U.K. recovery is likely to be "slow and subdued," the IMF's executive board said the priority is to repair the damage banks have suffered during the economic crisis.
"Substantial further write-downs would result in an erosion of capital buffers and might lead to renewed doubts about the capital adequacy of individual banks," the board said in an annual assessment of the U.K. economy.
http://online.wsj.com/article/SB124777864393853707.html
