The Bank of England's new financial policy committee (FPC) has called for an audit of UK banks' exposure to the eurozone debt crisis. The Bank's governor Sir Mervyn King said the debt problems of Greece and other countries posed "the most serious and immediate risk" to UK banks.

The FPC also called for banks to divert their profits towards building up their reserves against future losses.


"Every bank needs to make absolutely clear what its exposure is," he said following a European Council summit in Brussels. "We need to make sure all our banks are being strengthened in terms of their capital reserves and what they can withstand." UK lenders need to build up their capital buffers as part of the Basel III international agreement, which was designed to ensure that all banks worldwide are better able to withstand another financial....Read more LINK: BBC News - Bank of England calls for audit of eurozone crisis risk