Resources for Basel II Capital Accord (Basel II)

Financial Services Authority receive a financing plan from London Scottish Bank

www.thriftyscot.co.uk

On New Year’s Eve, London Scottish Bank announced a £13m shortfall in its regulatory. They say they are now “examining a number of financing alternatives” in order to assist in increasing its capitalbase , yet strongly deny being in the same situation as Northern Rock, despite a downturn in shares in the subprime lender and debt collector.

New Basel II capital rules which came into force Jan 01, 2008 are forcing the group to strengthen their capital base. They now intend to submit a plan to the Financial Services Authority which proposes to reduce the bank’s volume of lending and finding source of extra finance.

Analysts suspect this ‘extra finance’ could come in the shape of possibly bringing in a private equity firm or a strategic partner. This also comes hot on the heels of numerous takeover proposals last year with notably the most recent coming from their rivals ‘Cattles’ last year!

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