Governor of the Bank of England Sir Mervyn King
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Sir Mervyn King: Action needed on bank buffers

UK banks need to build up their financial buffers to protect against potential future losses, Bank of England governor Sir Mervyn King has said.

He was speaking as the Bank unveiled its twice yearly Financial Stability Report, which calls on the Financial Services Authority (FSA) to ensure banks gave an accurate picture of their financial health.

Sir Mervyn added that, if banks appeared to overstate the strength of their balance sheets in future, the approach should be to "just deal with it now."

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