In its meeting on 21 November, and as reflected in the semi-annual Financial Stability Report, the Financial Policy Committee (FPC) has recommended action to ensure the UK banking sector’s capital reflects proper valuation of assets, prudent calculation of risk weights and realistic provisions for future conduct costs (such as for Payment Protection Insurance mis-selling). The aim is to remove uncertainty about capital adequacy, restore confidence and enable banks to increase lending. FPC suggests that banks can strengthen capital by raising equity, issuing contingent capital instruments or disposing of non-core businesses. (Source: Financial Stability Report November 2012 and FPC 21 November Minutes)