The fiction of the “Great Capital Rebuild”

Source: Cobden Centre
by Prof Kevin Dowd

“The central element of the Bank of England’s narrative on the UK banking system is the ‘Great Capital Rebuild.’ To paraphrase Governor Carney’s comments when the 2015 stress tests were released: the post-Global Financial Crisis (GFC) period and the long march to higher capital are over. The message — which he has repeated since — is that UK banks are now more or less fully capitalised. Unfortunately, the ‘Great Capital Rebuild’ is a fiction. Let’s look at the evidence.” (07/24/17)