Nationwide no longer needs to raise a further £500m to strengthen its capital ratios, the UK’s biggest building society said yesterday.
The mutual said at the time of the bail-out it believed it had a strongly capitalised balance sheet and no need for additional capital. But it agreed to the capital injection because the bail-out was aimed at stabilising the banking system.
Since then, Nationwide has been in talks with the Financial Services Authority, the City regulator, about its core tier one capital ratio, which measures financial strength.
The bank has now cleared the regulatory conditions needed to use its previously agreed internal ratings-based models to assess its solvency ratios, in line with banking peers.
Financial Times, Daily Telegraph