Banks in the UK must continue bolstering their capital reserves in order to make sure they are resistant to the impact of the eurozone debt crisis.
That is according to the Bank of England's (BoE) Financial Policy Committee (FPC), which has warned financiers it is vital for them to remain guarded against the ongoing issues being seen on the continent.
Minutes from the FPC's latest policy meeting held earlier this month indicated that conditions remain tough for lenders - a trend that is likely to continue in the coming months.
"The committee judged that the risks to financial stability had not altered sufficiently since its previous meeting to warrant a change to its current set of policy recommendations," the document noted.
During an interview with Channel 4 News last week (20 September), BoE governor Mervyn King insisted that the full set of banking reforms outlined in the Vickers report should be implemented.
By Tony Aynsley