March 17, 2011

UK banks face euro zone debt restructure risk-FSA

LONDON, March 17 (Reuters) - Britain's banks are in better health than they
were two years ago at the height of the financial crisis but still face risks like a possible debt restructuring in peripheral euro zone states, the Financial Services Authority said on Thursday.

The UK watchdog said in its prudential risk outlook, which shapes how it will spend its budget to supervise banks over the coming year, that lenders are not in the clear yet.