News Headline Summary

Fitch says UK banks' liquidity reserves may have peaked

Says:
- In order to expand lending and improve earnings, UK banks are likely to reduce their liquidity reserves during 2013.

- Low credit demand, high capital requirements, prolonged low base rates, tougher conduct and misselling measures have dampened medium-term earning prospects for the major UK banks.

Update details:

- This somewhat echoes Fitch's earlier comments saying British banks could need more capital.

Print 10:04, 24 Jan 2013 - Rating Agency comments - Source: Newswires