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Banks face capital hit from ‘punitive’ EU pensions rule

Consultant estimates Big 5 may need to put extra £12 billion of Tier 1 against portfolios

The UK’s five largest banks may have to find billions of pounds of extra high-quality capital to back their pension schemes under regulations coming in next year.

Pensions consultancy Redington has calculated the requirement as £12 billion. It cautions that it has used figures from the banks' 2012 accounts. Banks could have reduced their liability by reducing equity exposure since then.

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