The Bank of England said today in its Financial Stability Report that banks should make the most of strong profits and relatively stable financial markets to bolster their weakened balance sheets and protect themselves against any future worsening in macroeconomic conditions.

"Despite inevitable short-term costs, there is a strong case for banks acting now to improve balance sheet positions while conditions are favorable," the BofE said.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.