The Financial Policy Committee (FPC) has announced the results of the FSA assessment that followed FPC’s November 2012 Recommendation on UK banks’ capital levels. That Recommendation expressed concerns about banks’ practices around asset valuation, calculation of risk weights and conduct costs forecasting. FSA’s assessment has concluded that, benchmarked against a 7% Tier1 capital ratio, UK banks have a shortfall in capital of £25 billion. FPC has recommended PRA to ensure that UK banks address that shortfall by the end of 2013. (Source: FPC Statement From its Policy Meeting, 19 March 2013 and FSA Methodology Note on Calculating Capital Pressures)