U.K. Banks Seen Sacrificing Lending to Meet BOE Capital Demand

U.K. Banks Seen Sacrificing Lending to Meet BOE Capital Demand

Chris Ratcliffe/Bloomberg

While trimming or delaying dividends, selling assets, reducing pay or raising equity would also bolster capital, banks such as government-owned Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc may be tempted to shrink lending, said Paul Mumford, who helps manage about 350 million pounds ($569 million) including Barclays Plc, RBS and Lloyds shares at Cavendish Asset Management Ltd. in London.