The interim Financial Policy Committee voted unanimously for the following six policy recommendations: 1. The Prudential Regulation Authority (PRA) should assess current capital adequacy using the Basel III definition of equity capital but after: (i) making deductions from currently-stated capital to reflect an assessment of expected future losses and a realistic assessment of future costs of conduct redress; and (ii) adjusting for a more prudent calculation of risk weights. 2. The PRA should take steps to ensure that, by the end of 2013, major UK banks and building societies hold capital resources equivalent to at ... (full story)