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In a move known as liability management, banks can improve capital levels without raising additional funds.
"They are limited in what they can do to improve capital spending, and that's the weakest sector," he said.
"Any significant fall in the current geopolitical and other risks should noticeably improve capital outlays, the indispensable spur to a path of increased economic growth," he said.
BNP Paribas says that Deutsche Bank was its client.Under banking rules, such disposals improve capital ratios only if they are genuine disposals.
It said: The incoming chief executive's need to improve capital ratios leads us to halve our dividend per share forecast as well as move from modest loan growth to shrinkage.
So, rather than trying to improve labour productivity further (up nearly 60% since privatisation in 1987), BA wants to improve capital productivity with smaller jets, frequent services and a focus on premium traffic.
Similar(46)
Mr. Lucas said Barclays was keeping its options open in regard to improving capital.
The company has benefited from improving capital markets activity as well a steady recovery in consumer credit and business lending.
While improving capital standards at banks is necessary for building a stronger, more stable financial system, it is not sufficient.
Improved capital requirements and leverage restrictions are now also under consideration in international forums as a key element of reform.
"Investments from sovereign wealth funds can also bring benefits by relaxing borrowing constraints, reducing the cost of capital for businesses and by improving capital allocation".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com