A new report from the Bank of England has shown that banks throughout the United Kingdom may be facing losses that are not immediately evident on their balance sheets. This raises a number of concerns that need to be addressed. The central bank said that some action may be needed to keep the banks from going insolvent in the coming weeks. Central bankers are currently asking the Financial Services Authority to conduct an assessment of the banks to determine what their financial positions are at the moment.
The Bank of England has accused banks of taking a number of measures to hide their financial problems. Administrators are currently calling for new policies that will force banks to act with more transparency. The banks may also be required to find new ways to help make up for the shortfall. The BoE currently estimates that they may need to pay up to 60 billion pounds for the amount of money they owe.
The Bank of England has also made it clear that British taxpayers will not be on the hook for any losses that the banks have incurred. The banks are going to be forced to find a way to address these problems on their own without the assistance of a government bailout. The Bank of England said that it wants to be diligent about finding a way to help them avert another banking crisis before it arises.
The banking crisis has created a number of problems for the country. Experts hope that more transparency will help keep another crisis from arising in the future or needing to turn to another PPI crisis or LIBOR fixing scandal to bail themselves out.