Bank of England tells banks to raise £25bn

Major UK banks must raise a total of £25bn in extra capital by the end of 2013 to guard against potential losses, the Bank of England (BoE) has said.

In a statement, the BoE's Financial Policy Committee (FPC) said only some banks need to raise the cash, but did not name them.

It said banks could face losses of about £50bn over the next three years, relating to bad loans and fines.

Robert Peston reports.